Which of the following was an initial cause of the 2008-2009 financial crisis?
A) consumer refusal to spend followed by a stock market crash
B) lack of individual savings and faulty mortgages
C) the refusal of banks to extend credit or lend capital
D) the cost of the war and the ballooning federal deficit

Question

Quizplus · Accepted Answer

The 2008-2009 financial crisis was significantly triggered by a combination of high-risk mortgage lending practices and the proliferation of mortgage-backed securities based on these faulty mortgages, leading to a collapse when borrowers were unable to meet their loan obligations.

Which of the Following Was an Initial Cause of the 2008-2009