Which of the Following Did NOT Directly Cause the Worldwide

question 120

Multiple Choice

Which of the following did NOT directly cause the worldwide recession in 2007-2008?

• A)the decision by the government to bailout banks in 2008
• B)easy access to credit in the U.S.
• C)a large number of home purchasers who were unable to afford the homes
• D)booming housing prices that ultimately dropped

---

Definitions:

Operating Activities

Activities that are directly related to the running of a business and its day-to-day functions, generating most of its revenue and expenses.

Financing Activities

Transactions and events where a business raises funds to support its operations and expansions, often through borrowing or equity issuance.

Operating Activities

Activities that constitute the primary or main activities of a business, including sales, services, and day-to-day operations.

Merchandise Inventory

The total value of a retailer's or wholesaler's goods on hand at the end of an accounting period, available for sale to customers.