Which of the following mechanisms transferred the financial crisis from the US to the rest of the world?

Question

Quizplus · Accepted Answer

All of the above mechanisms contributed to the transfer of the financial crisis from the US to the rest of the world. The exposure of the world's financial system to sub-prime debt meant that when the US sub-prime mortgage market collapsed, it affected financial institutions around the world. The decline in US demand for imports also had a significant impact on economies that relied heavily on exports to the US. Finally, concerns about the housing market in other countries were also contagious, as investors became increasingly risk-averse and pulled out of investments globally.

Which of the Following Mechanisms Transferred the Financial Crisis from the US