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    • Question

      Sub-prime crisis' is a term associated with which one of

      the following events?
      A Economic recession Correct Answer Incorrect Answer
      B Political instability Correct Answer Incorrect Answer
      C Structural adjustment programmes Correct Answer Incorrect Answer
      D Growing social inequality Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      The United States subprime mortgage crisis was a nationwide financial crisis, occurring between 2007 and 2010, that contributed to the U.S. recession of December 2007 – June 2009. It was triggered by a large decline in home prices after the collapse of a housing bubble, leading to mortgage delinquencies and foreclosures and the devaluation of housing-related securities.

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