The statement is true. Layer 2 loops, created by redundant physical connections between switches without a loop-prevention mechanism, are a primary cause of broadcast storms. When a broadcast frame enters a looped topology, each switch forwards the frame out of all ports except the ingress port. The frame is then received by other switches in the loop, which repeat the process. This creates an endless circulation and exponential multiplication of broadcast traffic, consuming all available bandwidth and switch CPU resources, ultimately leading to a network outage. Spanning Tree Protocol (STP) is the standard mechanism to prevent such loops.

This is a true/false question where 'A' represents 'True'. The statement is a fundamental and accurate description of a common Layer 2 network problem. There are no other options to evaluate.

- Huawei HedEx Documentation for VRP, "STP/RSTP/MSTP Configuration Guide", Section: "STP/RSTP/MSTP Overview > Background". This section explicitly states that loops can cause broadcast storms.

- Tanenbaum, A. S., & Wetherall, D. J. (2011). Computer Networks (5th ed.). Pearson Education. Chapter 4, "The Medium Access Control Sublayer", discusses bridged networks and the problem of loops causing broadcast storms.

- Huawei HCIA-Datacom V1.0 Training Material, "Spanning Tree Protocol (STP)", Section: "Background". This material introduces STP as a solution to problems like broadcast storms caused by network loops.