In the financial crisis that started in 2006, a significant indicator of the U.S. economic decline was:
A)a significant drop in interest rates.
B)a sharp increase in unregulated Ponzi-type security sales.
C)rising defaults by subprime mortgage borrowers.
D)a large increase in loan default due to unemployment.

Question

Quizplus · Accepted Answer

The rising defaults by subprime mortgage borrowers was one of the major causes of the financial crisis that started in 2006. This increased level of defaults on mortgages resulted in a collapse of the housing market, which in turn led to a collapse of the financial system. This was a key indicator of the U.S. economic decline.

In the Financial Crisis That Started in 2006, a Significant