Credit Rating Agencies Were Subject to Conflicts of Interest in the Subprime

question 87

Multiple Choice

Credit rating agencies were subject to conflicts of interest in the subprime mortgage market because ________.

• A) banks were earning large fees by underwriting the mortgage-backed securities
• B) they had little incentives to make sure that the mortgage was a good credit risk
• C) they had weak incentives to make sure that the holders of the securities would be paid back
• D) they were earning fees from rating the mortgage-backed securities and from advising clients on how to structure the securities to get the highest ratings

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Definitions:

Psychotherapy

A therapeutic treatment that utilizes psychological methods, particularly when based on regular personal interaction, to help a person change behavior and overcome problems in desired ways.

Evidence Based Treatments

Therapeutic practices and interventions that are backed by scientific evidence, demonstrating effectiveness through rigorous research and studies.

Interpersonal Therapeutic Groups

Therapy groups focused on the development and improvement of interpersonal relationships within the group setting, often used to address personal issues.

Here and Now

A focus on the present moment, often emphasizing awareness and mindfulness in the current situation.