Which of the Following Is True of Credit Rating Agencies

question 49

Multiple Choice

Which of the following is true of credit rating agencies?

• A) The credit rating agencies were prompt in recognizing the riskiness of the mortgage-backed securities that were at the center of the financial crisis.
• B) The credit rating agencies were widely criticized for failing to appreciate the risks associated with the collateralized debt instruments.
• C) Credit rating agencies are government-owned companies.
• D) The ratings issued by the credit rating agencies have always been accurate in their risk assessment.

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Definitions:

Pay Plans

Structured systems used by organizations to determine compensation for employees, including salary, wages, bonuses, and other financial incentives.

Individual Performance

This term refers to the collective measure of an employee's work in terms of efficiency, quality, and contribution to the organization’s goals.

Japan

A country located in East Asia, known for its rich culture, advanced technology, and strong economy.

Managers' Attitudes

Managers' attitudes encompass their perceptions, feelings, and beliefs about their role, employees, organization, and the broader work environment.