Which of These Statements Is True of the Main Bond-Rating

question 4

Multiple Choice

Which of these statements is true of the main bond-rating agencies today?

• A)Bond-rating agencies are subject to numerous regulations imposed by the Fed.
• B)There are six main recognized bond-rating agencies today, as compared to only three in the past.
• C)Each of the three main bond-rating agencies has a slightly different system for rating bonds.
• D)Only two of the main bond-rating agencies today came into existence within the past forty years.

---

Definitions:

Bank Regulators

Authorities or bodies responsible for overseeing and ensuring the safety, soundness, and compliance of banks and financial institutions with relevant laws and regulations.

Victor Vroom

A psychologist known for his work on the expectancy theory of motivation, which explains how individuals choose among different behaviors based on their expectations of the outcomes.

Expert System

An expert system is a computer program that uses artificial intelligence to emulate the decision-making abilities of a human expert.

Five-Point Scale

A commonly used rating system with five options that allow individuals to express a range of judgments about a particular subject.