In September and October 2008, financial markets around the world suffered a severe crash as a consequence of aggressive lending to subprime borrowers in a deregulated environment.

Question

Quizplus · Accepted Answer

The statement accurately describes the 2008 financial crisis, which occurred due to the collapse of the housing market and high-risk lending practices. These events led to a global economic downturn, with stock markets plummeting and the bankruptcy of several major financial institutions.

In September and October 2008, Financial Markets Around the World