Question

Describe the differences and similarities surrounding the circumstances that caused the financial crisis during the 1980s and the crisis of 2007.

Answer 1

Answer:

The financial crisis that began in the 1980s was the result of lax government regulations and management fraud that led to the closure of more than 1,000 savings and loans. The 2007 crisis was the result of risky mortgage loans and investments connected with those loans. In each case the situation resulted in borrowers’ inability to pay back loans and caused many to lose their homes due to foreclosure.

Explanation: Took the practice test on edge and this was the sample response. ^-^

Answer 2

Increased unemployment, loss of income and increased risk have been among the major social impacts of the crisis.

What do you mean by financial crisis?

A financial crisis is when financial instruments and assets fall sharply in value.

In the 1980s, The financial crisis that occurred was the result of government regulations and administrative fraud that resulted in the closure of savings and more than a thousand loans.

The crisis of 2007 was the result of risky home loans and investments related to those loans.

Thus,these are the differences and similarities of the financial crisis during the 1980s and the crisis of 2007.

Learn more about Financial crisis here:

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