In the aftermath of the global financial crisis, it is generally accepted that record ________ on Wall Street played a significant role.

Question

Quizplus · Accepted Answer

High levels of leverage, or borrowing money to invest in financial assets, were a key factor in the financial crisis. When the value of these assets dropped, it left banks and investors with enormous losses and a lack of liquidity. This contributed to the collapse of major financial institutions and the subsequent economic recession.

In the Aftermath of the Global Financial Crisis, It Is