With regard to the financial crisis of 2008, a significant indicator of the U.S. economic decline was:

1. a significant drop in interest rates.

2. a sharp increase in unregulated Ponzi-type security sales.

3. rising defaults by subprime mortgage borrowers.

4. a large increase in loan default due to unemployment.

The financial crisis of 2008 was magnified by which of the following?

1. Mortgage lenders securitizing large quantities of their loans

2. Ethical issues affecting high value investment

3. Public concern over tensions in the Persian Gulf

D. Consistently increasing oil and gas prices

D. Consistently increasing oil and gas prices

On 15 September 2008, the Wall Street investment bank Lehman Brothers filed for bankruptcy. Which of the following statements are correct:

1. The Lehman Brothers bankruptcy is generally considered to be the day the economic crisis began in earnest.
2. Then-U.S. president George W Bush announced that there would be no bail-out.
3. The 2008 financial crash had long roots but it wasnt until September 2008 that its effects became apparent to the world.
4. The immediate trigger was a combination of speculative activity in the financial markets, focusing particularly on property transactions
5. All of the statements are correct.