9
QuizMultiple Choice

Private Financial Institutions

Question 9 • FL-2106010-M/J Civics B

The 2007 financial crisis was started by risky investments connected to __________ loans.

Answer
A
student
B
mortgage
C
bankruptcy
D
small business

Explanation

The crisis began with risky lending and investments tied to home mortgages, especially subprime mortgages made to borrowers with weaker credit. When many borrowers could not repay their loans, mortgage-related investments lost value and destabilized financial institutions. Therefore, the correct choice is mortgage.

AI-written and checked against the verified answer.

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