In Events Leading to the Housing Bubble,the Credit-Rating Agencies Rated

question 89

Multiple Choice

In events leading to the housing bubble,the credit-rating agencies rated the assets associated with the housing market:

• A)proper mid-level ratings indicating moderate risk,but were ignored.
• B)proper AAA ratings indicating low risk,but were ignored.
• C)proper AAA ratings indicating low risk,and turned out to be too optimistic.
• D)proper mid-level ratings indicating moderate risk,and turned out to be too optimistic.

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Definitions:

Down

a direction towards a lower position or a lower point on a scale.

Quadri-

A prefix meaning "four," used in medical terms to signify four parts or quadruple.

Extra-

A prefix meaning outside, beyond, or in addition to.

Inside

The inner part or space of something.