
Explanation:
Subprime Mortgage Defaults (2006-2007):
The crisis began with a significant rise in defaults on subprime mortgages in the U.S., triggered by declining home prices and risky lending practices.
Collapse of Lehman Brothers (September 2008):
The financial turmoil escalated when Lehman Brothers, a major investment bank, filed for bankruptcy. This event highlighted the systemic risk in financial markets.
Global Credit Crunch (Late 2008):
The collapse of Lehman Brothers caused a freeze in interbank lending and a liquidity crisis, as banks were reluctant to lend to each other. This marked the global credit crunch.
Stock Market Crash (Late 2008-2009):
Investor panic led to sharp declines in global stock markets, reflecting fears of a prolonged recession and systemic failures.
Sovereign Debt Crisis in Europe (2010-2012):
The aftershocks of the financial crisis and the subsequent fiscal stimulus measures strained public finances, leading to a sovereign debt crisis in several European countries, particularly Greece, Portugal, and Ireland.
Q.6295 The Great Financial Crisis of 2007-2009 was a global event with far-reaching consequences. Which of the following sequences of events best describes the unfolding of the key phases of the crisis?
A
Collapse of Lehman Brothers β Subprime mortgage defaults β Global credit crunch β Sovereign debt crisis in Europe β Stock market crash
B
Subprime mortgage defaults β Collapse of Lehman Brothers β Global credit crunch β Stock market crash β Sovereign debt crisis in Europe
C
Stock market crash β Subprime mortgage defaults β Collapse of Lehman Brothers β Global credit crunch β Sovereign debt crisis in Europe
D
Subprime mortgage defaults β Stock market crash β Global credit crunch β Collapse of Lehman Brothers β Sovereign debt crisis in Europe
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