The Work of Bond Rating Agencies Is Important Because

question 39

Multiple Choice

The work of bond rating agencies is important because

• A) They ensure that all principal and interest payments on bonds issued will be made.
• B) The rating they assign proves the quality of a particular debt instrument.
• C) They affect the debt's marketability and hence its interest rate.
• D) Bonds cannot be issued without them.

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Definitions:

Jurisdiction

The official power to make legal decisions and judgments, often within a defined geographical area or over certain types of legal cases.

Concurrent Jurisdiction

Jurisdiction that exists when two different courts have the power to hear a case. For example, some cases can be heard in either a federal or a state court.

Federal Court

A court established by the federal government of a country, having jurisdiction over matters that fall within federal law.

Remedies

The means by which a violation of rights is redressed or the enforcement of a right is achieved, often involving legal processes or actions.