Why did the Greek crisis threaten to spread to the rest of Europe?
A)Because there were not any other states struggling with debt
B)Because of arbitrage and capital mobility
C)Because of the International Monetary Fund
D)Because many banks that were owed monies by Greek businesses were headquartered in other European states

Question

Quizplus · Accepted Answer

The Greek crisis threatened to spread to the rest of Europe because many European banks had significant exposure to Greek debt. If Greece defaulted, it could have led to a banking crisis in other European countries, potentially destabilizing the entire Eurozone.

Why Did the Greek Crisis Threaten to Spread to the Rest