2019 · Q32
'Sub-prime crisis' is a term associated with which one of the following events?
General KnowledgeIndian Economy
- AEconomic recession
- BPolitical instability
- CStructural adjustment programmes
- DGrowing social inequality
Explanation
The sub-prime crisis refers to the collapse of the US market for sub-prime mortgages beginning in 2007. The default of high-risk home loans triggered a banking crisis that spread across the world and produced the Great Recession. It is therefore fundamentally associated with economic recession, not with political instability, structural adjustment programmes or social inequality as such. Hence option A is correct.