The collapse of __________ lead to an overall financial crisis in the United States that quickly spread to other nations,causing the world gross domestic product to fall 1.5 percent.

Question

Quizplus · Accepted Answer

The collapse of the housing market and the subprime mortgage crisis in 2008 lead to a financial crisis in the United States. The housing market crash caused several large financial institutions to fail, which triggered the economic meltdown. This crisis quickly spread to other countries, leading to a global recession and a 1.5 percent fall in the world GDP. Therefore, option C is the correct choice. The leading corporations, banking system, and stock market were all impacted by the collapse of the housing market, but it was the root cause of the financial crisis.

The Collapse of __________ Lead to an Overall Financial Crisis