Some European nations have experienced a debt crisis. What caused this crisis?

A.

Unscrupulous national leaders embezzled money from the treasuries of some European countries.

B.

Too many recent immigrants in some nations have drained these countries' resources.

C.

The interest rate on bonds dropped so low during times of economic austerity that some nations could not earn enough interest on money they lent to investors.

D.

During times of economic prosperity, some nations borrowed more money than they can pay back now in times of economic hardship.

Question

Tristan Holder

History

24 July, 05:42

Some European nations have experienced a debt crisis. What caused this crisis?

A.

Unscrupulous national leaders embezzled money from the treasuries of some European countries.

B.

Too many recent immigrants in some nations have drained these countries' resources.

C.

The interest rate on bonds dropped so low during times of economic austerity that some nations could not earn enough interest on money they lent to investors.

D.

During times of economic prosperity, some nations borrowed more money than they can pay back now in times of economic hardship.

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Answers (1)

Know the Answer?

Beckham Pollard · Answer 1

The right answer is C: The interest rate on bonds dropped so low during times of economic austerity that some nations could not earn enough interest on money they lent to investors.