The Great Recession Quiz

When did the Great Recession occur?

• 2007 to 2009

• 2000 to 2002

• 2010 to 2012

• 1995 to 1997

What was the primary cause of the Great Recession?

• Financial regulation failures

• Excessive borrowing by households

• Subprime mortgage crisis

• Stock market crash

What is a subprime mortgage?

• A mortgage issued to borrowers with no credit history

• A mortgage issued to borrowers with high credit ratings

• A mortgage issued to borrowers with low credit ratings

• A mortgage issued to borrowers with average credit ratings

Why did banks start giving subprime mortgages to people with low credit ratings?

• To help people achieve the American dream of homeownership

• To take advantage of the booming economy

• To stimulate the housing market

• To make a large profit from high interest rates

What happened to the housing market in 2007?

• The housing bubble stabilized and home prices remained steady

• The housing bubble grew and home prices skyrocketed

• The housing bubble had no impact on home prices

• The housing bubble burst and home prices dropped rapidly

How did the Great Recession affect the average American?

• The national deficit decreased

• Many people and businesses suffered huge financial losses

• The economy improved and everyone became wealthier

• Financial firms were able to lend more money

How many Americans lost their jobs during the Great Recession?

• Over 8 million

• Less than 1 million

• Around 4 million

• Exactly 2.5 million