(A) ** True
(B) False
EXPLANATIONS BELOW
Concept note-1: -The 2007–2008 financial crisis developed gradually. Home prices began to fall in early 2006. In early 2007, subprime lenders began to file for bankruptcy. In June 2007, two big hedge funds failed, weighed down by investments in subprime loans.
Concept note-2: -The US bear market of 2007–2009 was a 17-month bear market that lasted from October 9, 2007 to March 9, 2009, during the financial crisis of 2007–2009. The S&P 500 lost approximately 50% of its value, but the duration of this bear market was just below average.
Concept note-3: -Financial firms sold these subprime loans to large commercial investors in pools of mortgages known as mortgage-backed securities. By the fall of 2008, borrowers were defaulting on subprime mortgages in high numbers; the collapse of the financial markets and the global Great Recession ensued.
Concept note-4: -The 1987 stock market crash, or Black Monday, is known for being the largest single-day percentage decline in U.S. stock market history. On Oct. 19, the Dow fell 22.6 percent, a shocking drop of 508 points.