What did the Great Recession in 2007 show about financial markets?

Question

Quizplus · Accepted Answer

The Great Recession of 2007 showed that financial markets throughout the world are highly connected, as the crisis spread from the US to other countries and had a global impact.

Answer: B
 The Great Recession of 2007 showed that segmented or isolated markets are those most exposed to risk during financial crises, as they lack diversification and resilience to shocks.

Answer: C
 The Great Recession of 2007 did not show that the IMF failed to target corruption in financial markets effectively, as corruption was not the main cause of the crisis and the IMF has been working to improve financial regulation and supervision.

Answer: D
 The Great Recession of 2007 did not show that the housing bubble only affected investors with a direct connection to the housing market, as the impact of the crisis spread to other sectors and industries, such as banking, insurance, and credit markets.

What Did the Great Recession in 2007 Show About Financial