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.

---

Definitions:

War On Obesity

Refers to efforts and policies aimed at reducing obesity rates through public health campaigns, nutritional education, and interventions.

Quota Rent

The earnings above the normal profit that producers receive due to an imposed quota, limiting the quantity of goods available.

Clams

Marine bivalve mollusks known for their edible soft bodies enclosed within a hard shell.

Government Imposes

Refers to regulations, taxes, or policies that a governmental body enforces on individuals or organizations.