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Explain How the Market Can Reduce the Incentive for Credit-Rating

question 49

Essay

Explain how the market can reduce the incentive for credit-rating firms to take advantage of conflicts of interest.


Definitions:

Tendency

An inclination towards a particular characteristic, action, or behavior.

New Stimuli

Fresh or novel inputs or triggers that elicit responses from an organism or a cognitive system.

Piaget

Swiss psychologist known for his theory of cognitive development in children.

X Chromosome

One of the two sex chromosomes that determines an individual's genetic sex, XX for female and XY for male.

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