Developments in the mortgage markets were major contributors to the severity of the 2007- 08 financial crisis.

Question

Quizplus · Accepted Answer

The mortgage markets played a significant role in the 2007-08 financial crisis, as risky lending practices, such as subprime mortgages and adjustable rate mortgages, led to widespread defaults and foreclosures, ultimately causing a collapse of the housing market and financial institutions.

Developments in the Mortgage Markets Were Major Contributors to the Severity