Which Event Triggered the Recession That Began in 2008

question 118

Multiple Choice

Which event triggered the recession that began in 2008?

• A)Consumers were unwilling to purchase electronic equipment.
• B)Businesses were unable to make loan payments.
• C)Homeowners were unable to make mortgage payments.
• D)Renters were unable to find available housing.

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Definitions:

Amortization

The process of gradually paying off a debt over a period of time through planned, periodic payments of principal and interest.

Bond Discount

The difference between the face value of a bond and the price for which it is sold, when the bond is sold for less than its face value.

Operating Activities

Operating activities relate to the primary, day-to-day activities of a business such as selling products, manufacturing, and expenses related to administration.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.