Credit-Rating Agencies Do Which of the Following

question 65

Multiple Choice

Credit-rating agencies do which of the following?

• A)evaluate a borrower's probability of default
• B)assign the borrower to a particular risk class
• C)help lenders determine the credit worthiness of a borrower
• D)All of the above are correct.

Comprehend the laws and regulations that govern business activities.

Identify and explain the forces of competition within industries.

Distinguish between business plans and strategic plans and their purposes.

Recognize the significance of a mission statement in business.

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Definitions:

Monetarists

Economists who emphasize the role of governments in controlling the amount of money in circulation to regulate the economy and control inflation.

Classical Economic Theory

A school of thought in economics that emphasizes free markets, the importance of limited government intervention, and the role of supply and demand in an economy.

Expansionary Fiscal Policies

Government policies aimed at stimulating economic growth through increased public spending, tax cuts, or both, thereby increasing aggregate demand.

Deficit Financing

Deficit financing refers to the practice where a government borrows money to cover a gap between its spending and revenues, often leading to an increase in public debt.