Question

One major cause of the 2008 financial crisis was that ___.

President Bush decreased the gold supply

Congress passed new tariffs

banks made risky loans and inflated housing prices

Answer 1

One major cause of the 2008 financial crisis was that banks made risky loans and inflated housing prices. During the housing bubble, financial institutions issued a large number of subprime mortgages, which were loans given to borrowers with poor credit histories. This led to a dramatic increase in housing prices, and when the bubble burst, it resulted in widespread defaults and a financial crisis.