All of the Following Are Credit-Rating Agency Reforms Proposed by the SEC

question 72

Multiple Choice

All of the following are credit-rating agency reforms proposed by the SEC in 2008 except

• A)prohibit credit-rating agencies from structuring the same products that they rate.
• B)disclose historical ratings performance.
• C)differentiate the ratings on structured products from those issued on bonds.
• D)sever links between research and securities underwriting.

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Definitions:

Insolvent

A financial state where an individual or entity cannot meet their debts as they become due.

Down Payment

An initial upfront portion of the total amount due, typically in the context of purchasing expensive goods like cars or real estate, representing a fraction of the full price to reduce the loan amount.

Misrepresenting Solvency

Falsely presenting a company's or individual's financial stability or ability to pay debts, often to secure loans or delay bankruptcy.

Reclaim

The process of getting something back or asserting one's rights to a previously ceded property or state.