What effect did the financial crisis have on credit markets around the world?
A) It did not affect the U.S. credit markets.
B) It did not affect the global markets.
C) It made credit markets more liquid.
D) It froze credit markets.
E) The crises only affected the stock market, not the credit market.

Question

Quizplus · Accepted Answer

The financial crisis of 2008 had a significant impact on credit markets around the world, causing them to freeze up. Banks were hesitant to lend money to each other and to businesses, resulting in a lack of available credit for consumers and companies alike. This had a ripple effect on the global economy, leading to a recession that lasted for several years.

What Effect Did the Financial Crisis Have on Credit Markets