How Did the Collapse of the U

question 23

Multiple Choice

How did the collapse of the U.S.housing market spark the global financial crisis?

• A)U.S.banks defaulted on loans given to them by foreign banks to buy real estate.
• B)The U.S.government restricted international investment to focus resources on bailing out home owners.
• C)Many mortgages and associated financial instruments would only be good if housing prices kept increasing.
• D)Many foreigners had bought housing in the United States during the bubble,and they pulled out all of their money when housing prices dropped.

---

Definitions:

Defamation Suit

A legal action brought against an individual or entity for making false statements that harm another's reputation.

Absolute Privilege

A legal immunity shielding individuals from lawsuits for statements made during certain official proceedings, regardless of their truth or intention.

Invasion Of Privacy

The intrusion into the personal life of another, without just cause, which can give the person whose privacy has been invaded a right to bring a lawsuit for damages against the person or entity that intruded.

Intent Necessary

The requirement in law and ethics that an action must be accompanied by a conscious aim or purpose to perform that action.