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:

Reaction Speed

The rate at which reactants are converted to products in a chemical reaction.

Heated Reactions

Chemical reactions that require the addition of heat energy to proceed or to increase the rate of the reaction.

Temperature Dependence

Describes how the properties of substances change as the temperature changes, affecting reactions, phases, and physical properties.

Insect Activity

The behavioral patterns and physical actions of insects, including feeding, reproduction, and movement.