Which of the following occurred as a result of the subprime mortgage crisis?
A)American International Group (AIG), a giant insurance company, was on the brink of bankruptcy when the government stepped in and bailed it out with loans of $85 billion.
B)The Federal National Mortgage Association (Freddie Mac) was bought by Merrill Lynch.
C)Profits at most banks rose as people started saving more.
D)The government provided $15,000 to homeowners who could not make their mortgage payments and so foreclosures declined.

Question

Quizplus · Accepted Answer

The subprime mortgage crisis resulted in many homeowners defaulting on their mortgage payments, leading to the collapse of many financial institutions. One of the most significant impacts was the near-bankruptcy of American International Group (AIG), which required a government bailout of $85 billion to prevent its collapse. None of the other options provided are accurate descriptions of the impact of the subprime mortgage crisis.

Which of the Following Occurred as a Result of the Subprime