The Sub-prime crisis refers to the financial crisis that began in the United States in 2007 with a high default rate on subprime mortgages (loans given to borrowers with poor credit history). The packaging and selling of these mortgages as complex financial instruments spread the risk throughout the global financial system, leading to the collapse of major financial institutions and triggering a severe global economic recession in 2008 and 2009.
'Sub-prime crisis' is a term associated with which one of the following events?
Asked in UPSC CDS 1 2019 · Topic: Money & Banking (Financial Markets: Money Market and Capital Market (Components, Instruments, Role))
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