Private Rating Agencies Evaluate and Then Grade the Default Risk

question 98

Multiple Choice

Private rating agencies evaluate and then grade the default risk of bonds to address which of the following problems?

• A) the government's inability to judge default risks
• B) companies hiding their finances
• C) bondholders not having access to companies' finances
• D) individuals' inability to easily judge default risks
• E) too many investors picking risky bonds for their portfolios

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