In 2002 and 2003, the Financial Markets Were Hit by Many

question 108

Essay

In 2002 and 2003, the financial markets were hit by many corporate accounting scandals.Discuss these scandals and the impact they would have not only in terms of a flight to quality, but also in terms of the faith that people place in bond rating agencies.

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Definitions:

Tax Cut

A Tax Cut is a reduction in the amount of taxes that individuals or corporations are required to pay to the government, often aimed at stimulating economic growth.

President Bush

refers to either George H.W. Bush, the 41st President of the United States (1989–1993), or his son George W. Bush, the 43rd President (2001–2009), both of whom had significant impacts on U.S. and global affairs.

Economy

An area of the production, distribution, and trade, as well as consumption of goods and services by different agents in a particular geographic region.

Unemployment Benefits

Payments made by the government or a designated agency to unemployed individuals who meet certain eligibility criteria.