Agencies Exist Which Rate Bonds Based on Characteristics of the Borrower.Such

question 120

Multiple Choice

Agencies exist which rate bonds based on characteristics of the borrower.Such bond rating agencies are an example of a financial market response designed to:

• A)Increase information asymmetry
• B)Decrease the real return to bondholders
• C)Provide a lower cost solution to the high cost of information
• D)Transfer risk from the buyer to the rating agency

---

Definitions:

Organizational Pattern

A structured arrangement of information in a piece of writing or speech, used to enhance clarity and comprehension.

Who

A question word used to inquire about the identity or nature of a person or people.

Sincere Apology

A genuine expression of remorse for actions or words that have caused harm or offense to others.

Establish Rapport

The process of building a positive relationship between individuals, characterized by trust, understanding, and mutual respect.