Question

Aa

Hola
? Question
Drag each tile to the correct box:
Identify the correct sequence of events leading up to credit problems that affected the economy.
Tiles
Consumers became unable to pay back loans.
The economy grew.
Banks loosened their criteria for approving loans and credit.
Spending halted, and the economy experienced a recession.

Answer 1

The sequence of events leading to credit problems that affected the economy includes banks loosening loan criteria, economic growth, consumer loan repayment difficulties, and a recession.

Step-by-step explanation:

The correct sequence of events leading up to credit problems that affected the economy:

1. Banks loosened their criteria for approving loans and credit. This meant that more people were able to borrow money.
2. The economy grew. With more loans and credit, people were spending money and businesses were expanding.
3. Consumers became unable to pay back loans. Eventually, some borrowers were unable to repay their debts, leading to financial difficulties.
4. Spending halted, and the economy experienced a recession. As more people struggled to repay their loans, consumer spending decreased, causing a recession in the economy.

So, the correct sequence of events is: Banks loosened their criteria for approving loans and credit → The economy grew → Consumers became unable to pay back loans → Spending halted, and the economy experienced a recession.

Learn more about sequence of events leading to credit problems