The global financial crisis of 2007-2009 not only led to a worldwide recession,but also a ________ in the European nations that use the euro currency.
A)currency devaluation
B)budget surplus
C)sovereign debt crisis
D)tax cut

Question

Quizplus · Accepted Answer

The sovereign debt crisis refers to the high levels of government debt and inability to repay that debt faced by several European countries, particularly those in the Eurozone, as a result of the global financial crisis. It was caused by a combination of factors including lax lending practices, high levels of private and public debt, and a lack of fiscal discipline. This led to concerns about the solvency of these countries and their ability to repay their debts, which in turn had a negative impact on the value of the euro and the stability of the Eurozone economy.

The Global Financial Crisis of 2007-2009 Not Only Led to a Worldwide