One of the Trigger Points for the Financial Crisis of 2007-2009

question 141

True/False

One of the trigger points for the financial crisis of 2007-2009 was that subprime borrowers defaulted when the interest on adjustable-rate mortgages went up.

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Definitions:

Avoidance

A defensive or proactive behavior aimed at preventing discomfort, danger, or engaging with stressful situations.

Outcome

An outcome is the result or effect of an action, decision, or situation.

Primary Appraisal

The initial evaluation process where an individual assesses the significance of an event as a threat, challenge, or harm/loss.

Amygdala

A region of the brain within the temporal lobe, associated with experiencing emotions, particularly fear and aggression.