Which of the following was the catalyst for the recent financial crisis?
A) Corruption in the investment banking industry.
B) Widespread layoffs due to illegal alien hiring.
C) Defaults on subprime mortgages.
D) All of these.

Question

Quizplus · Accepted Answer

The defaults on subprime mortgages were the main catalyst for the financial crisis. These mortgages were given to individuals with poor credit scores and high risk of default. When these borrowers began defaulting on their loans, it caused a domino effect throughout the financial system, leading to the collapse of many financial institutions and the loss of millions of jobs. While corruption in the investment banking industry and illegal hiring of immigrants may have contributed to the crisis in their own ways, they were not the primary cause.

Which of the Following Was the Catalyst for the Recent