CONTEMPORARY AMERICA 1992 2013
PRESIDENT BARACK OBAMA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Select all of the following that contributed to the 2008 “Great Recession”
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Subprime mortgages were granted to people whose incomes were too low for the houses they were buying
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Banks were uninsured and personal savings were therefore wiped out
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Household debt was too high
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Overproduction of houses
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Overspeculation on the stock market
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Explanation:
Detailed explanation-1: -The Great Recession lasted from roughly 2007 to 2009 in the U.S., although the contagion spread around the world, affecting some economies longer. The root cause was excessive mortgage lending to borrowers who normally would not qualify for a home loan, which greatly increased risk to the lender.
Detailed explanation-2: -Key Takeaways. The stock market and housing market crashes of 2008 trace their origins to the unprecedented growth of the subprime mortgage market that began in 1999. Fannie Mae and Freddie Mac made home loans accessible to borrowers who had low credit scores and a higher risk of defaulting on loans.
There is 1 question to complete.