Which of the following resulted in the financial crisis in 2007-08?
A)Falling international reserves
B)Short-term investments made by China in the US
C)Lack of transparency
D)Bad loans on U.S.mortgages
E)Fixed rates of interest

Question

Quizplus · Accepted Answer

The financial crisis in 2007-08 was largely caused by bad loans on U.S. mortgages, particularly subprime mortgages. These loans were packaged into mortgage-backed securities and sold to investors, which led to a chain reaction of defaults and foreclosures ultimately leading to the collapse of major financial institutions.

Which of the Following Resulted in the Financial Crisis in 2007-08