Question

Discuss the causes and consequences of the global financial crisis in 2008.

Answer 1

The crisis led to increased scrutiny of financial systems, regulatory reforms, and a reassessment of the role of governments and central banks in managing economic stability.

Answer 2

The global financial crisis of 2008 was caused by a combination of factors, including the subprime mortgage crisis, irresponsible lending practices, and the failure of regulatory mechanisms. It resulted in a severe economic downturn, widespread job losses, and a collapse of major financial institutions.