Conflicts of Interest May Arise Within the Credit Rating Agencies

question 2

Multiple Choice

Conflicts of interest may arise within the credit rating agencies because

• A)the investors pay the credit agencies for ratings.
• B)the issuers of debt securities pay the credit agencies for ratings.
• C)the credit rating agencies provide auditing services to issuers of debt securities.
• D)the credit rating agencies are involved in offering credit counseling to investors.

Comprehend the cognitive basis of conditioning and its influence on behaviors.

Recognize the relationship between classical, operant, and observational learning.

Understand the impact of observational learning on behavior, including aggression.

Appreciate the applications of conditioning principles across various fields.

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Definitions:

Dr. Martin Luther King, Jr.

A prominent leader in the American civil rights movement, known for his advocacy for nonviolent resistance and his I Have a Dream speech.

Realistic Conflict Theory

A social psychological model that describes how conflict and competition between groups arise over actual competition for limited resources.

Prejudice

Preconceived opinions or judgments about individuals or groups based on biases without factual basis.

Scarce Resources

Economic term for assets, materials, or substances that are in limited supply in relation to their demand.