In 2008, It Became Clear That the Credit-Rating Agencies ________

question 2

Multiple Choice

In 2008, it became clear that the credit-rating agencies ________ the risk of the subprime products that ________.

• A) overstated; they helped create
• B) understated; they helped create
• C) overstated; they were paid to rate
• D) understated; they were paid to rate

---

Definitions:

Products

Items or services that are created or provided by a business for sale to customers.

Customers

are individuals or entities that purchase products or services from a business.

Ethical Conduct

Behavior that is consistent with principles of moral and ethical standards, which guide decision-making and actions.

External User

External User refers to individuals or entities outside of a company who use its financial statements to make decisions, such as investors, creditors, and regulatory agencies.