Which of the Following Is NOT a Reason That Credit

question 64

Multiple Choice

Which of the following is NOT a reason that credit ratings agencies became more relevant beginning in the late 1970s?

• A) The number of bond defaults rose due to periods of recession and inflation.
• B) Rating agencies began to charge investors for their services.
• C) Governments began to include bond ratings in their regulation of banks, mutual funds, and other financial firms.
• D) Rating agencies began to rate bonds issued by foreign governments and firms.

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Definitions:

Purely Situational Approach

A viewpoint emphasizing that behavior or decisions should be based solely on the specifics of the situation, rather than on general principles or theories.

Theory Y

Theory Y suggests a management style that assumes employees are self-motivated, seek responsibility, and can solve work problems creatively, advocating for a participative management approach.

Imagination

The ability of the mind to be creative or resourceful, envisioning things not currently present or not yet existing.

Positivist Concept

A philosophical theory stating that positive knowledge is based on natural phenomena and their properties and relations as verified by empirical evidence.