- The sub-prime crisis began in the US housing market around 2007. - It was caused by a combination of factors including easy credit, risky lending practices (sub-prime mortgages), and complex financial instruments (like CDOs). - Defaults on these loans led to a collapse in the value of mortgage- related assets held by financial institutions. - This triggered a global financial crisis and recession.
Consider the following statements and state which is/are correct? 1. The sub-prime crisis which hit the U.S. economy was caused by sudden increase in oil prices. 2. The crisis ld to default in home-loan repayment. 3. It led to failure of some U.S. banks. 4. Sub prime crisis caused crash in Indian Stock Market. Choose your answer from given code. Codes:
Asked in UPPCS Prelims 2010 · Topic: Money & Banking (Banking Sector Reforms: Basel Norms, Asset Quality Review (AQR), and NPA Management)
More Economic Development questions
- With what sujbect is Raghuram Rajan Committee connected ?
- Which of the following committees examined and suggested Financial Sector Reforms?
- Which one of the following represents capital adequacy ratio for Commercial Banks?
- Which of the following statements is correct?
- Which of the following is not a recommendation of the Narasimham Committee (1998)?
- Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act passed in the year
- The Act enables banks and financial institutions to recover their Non-Performing Assets (NPAs) without the intervention of the Court by taking over the management of the secured assets of the borrower or by selling the secured assets. 34. On which bank the RBI has slapped Rs. 1 crore penalty for not monitoring the end use of funds in respect of one of its borrowers?
- Who is the chairman of the committee on the 'Resolution Framework for COVID-19 related Stress' constituted by Reserve Bank of India?