A Changing Economy

AP US History· difficulty 3/5

The 2008 Financial Crisis

  • A

    Was avoided through preemptive regulation of derivatives and subprime mortgage markets

  • B

    Was a minor downturn quickly contained by routine Federal Reserve interest rate cuts

  • C

    Was the worst recession since the 1930s; triggered by housing/mortgage collapse and risky financial instruments

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  • D

    Was confined to Asian markets and had little measurable impact on U.S. banks or jobs

Explanation

Led to TARP bailouts, Dodd-Frank reforms, and prolonged recovery.

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