Rating Agencies Were Exposed to a Conflict of Interest Because

question 20

Multiple Choice

Rating agencies were exposed to a conflict of interest because:

• A)Credit rating agencies were rating securities and investing in those securities
• B)Credit rating agencies used ratings to sell securities
• C)Clients of the credit rating agencies used ratings to sell securities
• D)Investors do not want rating downgrades
• E)Credit rating agencies were paid by the firms who created the securities being rated

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Definitions:

Cluttered

Characterized by a disorderly accumulation of objects, leading to a crowded or untidy state.

Easy-to-Read

Text or material that is written or designed in a simple and clear manner, making it accessible and understandable to a wide audience.

Dependent Clause

A group of words that contains a subject and a verb but does not express a complete thought and cannot stand alone as a sentence.

Emphasize

To give special importance or prominence to something in speech or writing.