Multiple choice general knowledge

2008 recession caused by

  1. Real estate bubble

  2. Growing prices & unemployment in US

  3. Deregulation of real estate mortgages & Securitization of real estate mortgages

  4. Change of government policies
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The 2008 financial crisis was primarily caused by deregulation of mortgage markets and securitization of subprime mortgages. Banks bundled risky mortgages into complex financial products (MBS, CDOs) that were sold globally. When homeowners defaulted, these toxic assets became worthless, triggering the crisis. The housing bubble was a symptom, not the root cause.

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