Question

In 2009, the financial crisis in the United States was triggered by Group of answer choices the global hike in the price of crude oil. the slowdown in U.S. imports, due to political pressure. liberal lending policies by U.S. banks to homeowners. the artificial fixing of the currency rate by China.

Answer 1

Answer: Liberal lending policies by U.S. banks to homeowners

Explanation:

There was a general assertion in the United States before the 2008 Great Recession that real estate was the perfect investment because it was based on owning land and land cannot lose value.

Banks therefore lent money liberally to homeowners without properly assessing the risk of default. Other financial instruments were then modeled on these mortgages such as Mortgage Backed Securities which a lot of people invested in.

Eventually people couldn't pay their mortgages and so the demand for housing fell. The price fell along with it and everything based on mortgages fell as well and caused a domino effect that caused the Great Recession.

Answer 2

Answer:

liberal lending policies by U.S. banks to homeowners

Explanation:

In 2009, the financial crisis in the United States was triggered by liberal lending policies by U.S. banks to homeowners.