Question

Select ALL the correct answers.
Which three factors led to the Great Recession of 2008?

Banks loaned money to risky borrowers.
The financial sector was regulated.
The stock market crashed.
Banks decreased interest rates.
The price of houses dropped.

Answer 1

Answer:

1. The price of houses dropped.

2. Banks loaned money to risky borrowers. ,

3.The stock market crashed.

Explanation:

Answer 2

Three factors that led to the Great Recession of 2008 are-

1. Banks loaned money to risky borrowers.
2. Banks decreased interest rates.
3. The stock market crashed.

What is a Recession?

The situation in which a decline of economic activity is noticed due to fluctuation in the market, results in unemployment and limited sales indicate recession.

The recession has been occurred in the United States from December 2007 to June 2009 consider a big event after the great depression which disturbs the financial stability of the United States.

The factor which caused the Great Recession was lending money to borrowers with a low credit score which creates risk. The bank also decreased the rate of interest and along with that the stock market also collapsed.

Therefore, options 1, 3, and 5 are appropriate.

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