The threat of a financial crisis in Europe in 2011 and 2012 was based on problems with:
A)home loans in Germany.
B)political instability in France.
C)public debt problems in southern Europe and Ireland.
D)striking labor unions in northern Europe.

Question

Quizplus · Accepted Answer

The threat of a financial crisis in Europe in 2011 and 2012 was based on public debt problems in southern Europe and Ireland. Several countries in southern Europe, such as Greece, Spain, and Portugal, were struggling with high levels of public debt, which raised concerns about their ability to repay their loans and sparked fears of a potential default. The situation was worsened by the interconnectedness of European banks, which were heavily exposed to the debt of these countries. The crisis led to bailout packages for several countries and raised questions about the future of the eurozone. The other options- home loans in Germany, political instability in France, and striking labor unions in northern Europe- were not significant factors in the crisis.

The Threat of a Financial Crisis in Europe in 2011