Question

Explain GFC..? please answer the question In detail
​

Answer 1

Answer:

GLOBAL FINANCIAL CRISIS

The global financial crisis (GFC) refers to the period of extreme stress in global financial markets and banking systems between mid 2007 and early 2009. ... Many banks around the world incurred large losses and relied on government support to avoid bankruptcy.

Answer 2

Explanation:

The global financial crisis (GFC) refers to the period of extreme stress in global financial markets and banking systems between mid 2007 and early 2009. During the GFC, a downturn in the US housing market was a catalyst for a financial crisis that spread from the United States to the rest of the world through linkages in the global financial system. Many banks around the world incurred large losses and relied on government support to avoid bankruptcy. Millions of people lost their jobs as the major advanced economies experienced their deepest recessions since the Great Depression in the 1930s. Recovery from the crisis was also much slower than past recessions that were not associated with a financial crisis.

main causes of GFC

1. Excessive risk-taking in a favourable macroeconomic environment

2. Increased borrowing by banks and investors