Rating Agencies Were Exposed to a Conflict of Interest Because

question 1

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)the clients of credit rating agencies used ratings to sell securities.
• D)investors did not want rating downgrades.
• E)credit rating agencies were paid by the firms who created the securities being rated.

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Definitions:

Production Possibilities Curve

A graphical representation of the maximum goods and services that a society can produce, given its productive resources and technology.

Immigration

Choosing to live indefinitely in a country that is not your country of origin.

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The system of the body consisting of ductless glands.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse from one neuron (nerve cell) to another target neuron.