Answer: D
Explanation: Banks were giving loans to people with less than good credit, too many, too fast and then the loans were not paid back.
Too many risky loans given out could be considered a cause of the 2007–2008 economic crash.
The answer is option D.
It become because of the subprime loan crisis, which itself changed into caused by the unregulated use of derivatives. This timeline includes the early warning symptoms, reasons, and symptoms of breakdown. It additionally recounts the steps taken by means of the U.S. Treasury and the Federal Reserve to prevent an economic fall apart.
The inventory marketplace crash of 2008 because of defaults on consolidated mortgage-subsidized securities. Subprime housing loans comprised maximum MBS. Banks provided these loans to almost every person, even folks who weren't creditworthy. while the housing marketplace fell, many homeowners defaulted on their loans.
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