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:

National Mean

The average score of a given population on a particular test or assessment.

Graduate Program

An advanced course of study that follows a bachelor's degree, typically leading to a master's or doctoral degree.

National Group

A collective of individuals or entities sharing common nationality or national identity, often used in studies to represent a country's population.

Programme for International Student Assessment

An international study evaluating education systems worldwide by testing the skills and knowledge of 15-year-old students.