Which of the following is false with regards to the financial crisis of 2007-2008?
A)The financial crisis began in the subprime mortgage market.
B)The financial crisis spread to the broader economy.
C)To mitigate the crisis, the government put a one year moratorium on all foreclosures.
D)Many of the subprime loans reset to much higher interest rates after the first few years.

Question

Quizplus · Accepted Answer

The government did not put a one year moratorium on all foreclosures during the financial crisis. While there were some temporary measures put in place to try and mitigate the crisis, such as the Troubled Asset Relief Program (TARP) and the Home Affordable Modification Program (HAMP), there was no blanket moratorium on foreclosures.

Which of the Following Is False with Regards to the Financial