Final answer:
The financial crisis between 2007-2010 is most commonly referred to as the subprime mortgage crisis. It was triggered by a housing price collapse, leading to bank failures and a freeze in credit, affecting not just the U.S. but also many European countries.
Step-by-step explanation:
The recent financial crisis that occurred in 2007-2010 was often known as d. The subprime mortgage crisis. This crisis began with the housing boom and subsequent bust in the United States, leading to a significant decline in home equity. Housing prices started to fall in 2007, resulting in many home prices declining below the amount owed on mortgages, causing defaults.
Financial institutions worldwide had invested in mortgage-backed securities or had purchased insurance on them. As housing values collapsed, so did the value of these securities, heavily impacting the asset side of banks' balance sheets. The result was a wave of bank failures, a credit freeze, and a sharp decrease in lending and borrowing activities that contributed to a profound economic downturn not only in the U.S. but also in countries like Iceland, Ireland, the UK, Spain, Portugal, and Greece.