Question 8 • EAP-Virginia and US History B CR
Banks made large numbers of risky loans, including mortgages, to people who could not afford to repay them. When many borrowers defaulted, the value of those loans and related investments fell, triggering a financial crisis that spread through the global economy and caused a recession. A shortage of natural resources was not the main cause, and debt was not at an all-time low.
AI-written and checked against the verified answer.