Which of the following factors contributed to the Great recession of 2008?

Which of the following factors contributed to the Great Recession of 2008 quizlet

? The collapse of a "housing bubble" and the failure of Wall Street investment firm Lehmen Brothers.

What was the cause of the 2008 financial crisis

The supply of houses outran demand, borrowers defaulted on their mortgages, and the derivatives and all other investments tied to them lost value. The financial crisis was caused by unscrupulous investment banking and insurance practices that passed all the risk to investors.

What factors led to the Great Recession quizlet

• Rising Inequality.
• Loosening of bank lending rules.
• Rise of mortgage securitization.

What was the main cause of the recession that began in 2007 quizlet

What was the main cause of the recession that began in 2007? Defaults in subprime residential mortgages.

Who is to blame for the Great Recession of 2008

The Biggest Culprit: The Lenders
Most of the blame is on the mortgage originators or the lenders. That's because they were responsible for creating these problems. After all, the lenders were the ones who advanced loans to people with poor credit and a high risk of default. 7 Here's why that happened.

What were the economic practices that contributed to the crisis of 2008 quizlet

(1) Chinese money invested in USA: Some causes of the financial crisis lie in global imbalances, mainly, America's huge current-account deficit and China's huge surplus. -> USA used savings from abroad in order to finance profitable investment. (2) Money flooding: lower interest rates and lifting house prices.

How did the Great Recession start

, thus extending over 19 months.

What triggered the financial crisis of 2008 in the United States quizlet

in the United States? American housing prices dropped. What would most Americans see as a disadvantage of globalization? Jobs move to cheaper labor markets.

Which one of the following was not a contributory factor in the financial crisis of 2008

because the real cause was stockmarket bubble and house market bubble which were relate to financial institution butscarcity in the global supply of gold mined in Alaska was not a contributory factorin

What were the effects of the Great Recession

One of the most visible aspects of the recession, job losses and unemployment are known to be associated with increased stress, poorer health outcomes, declines in children's academic achievement and educational attainment, delays in age of marriage, and changes in household structure.

Which one of the following was common to the Great Depression and the Great Recession

During the Great Depression, there was a significant decline in aggregate demand, which occurred mostly as a result of faulty macroeconomic policies. Thus, the common factor during the Great Depression and the Great Recession was a decline in aggregate demand.

How did banks contribute to the financial crisis that began in 2008 quizlet

? *Banks lost money from loans to investment firms who bought mortgage-backed securities.

What is meant by the Great Recession quizlet

The sharp decline in economic activity during the late 2000s, which is generally considered the largest downturn since the Great Depression.

When did the Great Recession occur quizlet

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What is it called when banks bundle hundreds or thousands of mortgages and sell them as bonds

What is it called when banks bundle hundreds or thousands of mortgages and sell them as bonds? mortgage-backed securities.

What are subprime mortgage loans quizlet

The subprime mortgage is a type of mortgage that is available to individuals with low credit or no credit history at all. The idea of the subprime mortgage is to make the purchase of a house available to those with weak credit rating while the percentage rate is higher that the average mortgage.

When a wave of foreclosed properties hit the real estate market during the Great Depression

In 1932 between 250–275,000 people lost their homes to foreclosure. In comparison, 68,000 homes suffered foreclosure in 1926. By 1933 foreclosures reached the appalling rate of more than a thousand each day. Housing values dropped by approximately 35 percent.

When the economy is operating above its potential GDP the Federal Reserve will most likely

10. When the economy is operating above its potential GDP, the Federal Reserve will most likely A Increase the amount of dollars in circulation to boost economic activity.