According to reports,in addition to fraudulent information on loan applications,what can the subprime crisis of 2008 be traced to?
A) Overly relaxed credit standards
B) Home foreclosures
C) Defaults on credit payments
D) High unemployment levels
E) Prime mortgage rates

Question

Quizplus · Accepted Answer

The subprime crisis of 2008 can be primarily traced to overly relaxed credit standards, which allowed borrowers with poor credit history and insufficient income to qualify for loans. This led to a rise in default rates and ultimately led to the collapse of the housing market. While factors such as home foreclosures and defaults on credit payments also contributed to the crisis, they were a consequence of the underlying issue of lax lending standards. High unemployment levels and prime mortgage rates were also contributing factors but not as significant as relaxed credit standards.

According to Reports,in Addition to Fraudulent Information on Loan Applications,what