Financial problems began in Greece in late 2009, when:
A)the Greek government revealed that it had understated its budget deficits and debt.
B)the European Union forced Greece to give up its membership.
C)Greece adopted the euro.
D)the United Nations imposed trade sanctions on Greece.

Question

Quizplus · Accepted Answer

The revelation that the Greek government had understated its budget deficits and debt led to a loss of investor confidence and made it difficult for Greece to borrow money at affordable rates. This ultimately led to a financial crisis that required a bailout from the European Union and International Monetary Fund. The other options (B, C, D) are not accurate as Greece did not give up its EU membership, the adoption of the euro alone did not cause the crisis, and there were no UN trade sanctions imposed on Greece.

Financial Problems Began in Greece in Late 2009, When