Which of the Following Contributed to the Global Economic Crisis

question 54

Multiple Choice

Which of the following contributed to the global economic crisis of 2008?

• A)Low interest rates encouraging less qualified buyers to purchase houses
• B)An excessive outflow of foreign capital
• C)A large amount of subsidies being offered by the government
• D)Low ratings of mortgage-backed subprime securities
• E)A sharp increase in personal savings

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Definitions:

Operating Activities

These are the day-to-day activities of a business related to its primary operations, such as selling products or providing services, which are reflected in the cash flows of a company.

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity and overall financial health.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Consolidated Statement

Financial statements that aggregate the financial information of a parent company and its subsidiaries into one document.