Which of the Following Statements About Credit Ratings Is Most

question 45

Multiple Choice

Which of the following statements about credit ratings is most accurate?

• A) Credit ratings can migrate over time.
• B) Changes in bond credit ratings precede changes in bond prices.
• C) Credit ratings are focused on expected loss rather than risk of default.

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Definitions:

Ancient Greeks

Refers to the people and civilizations of Greece in classical times, known for their contributions to philosophy, democracy, and arts.

American Revolution

A historic conflict between Great Britain and its Thirteen Colonies in North America that resulted in the independence of the United States.

Early 20th Century

A historical period that extends from the year 1901 to 1940, marking the beginning phase of the 20th century.

1960s

A decade characterized by significant cultural, social, and political changes around the world.