The Conflict of Interest in Credit-Rating Agencies Arises Because ________

question 85

Multiple Choice

The conflict of interest in credit-rating agencies arises because ________ pay to have securities rated and,as a result,the agencies' ratings may be biased ________.

• A) security issuers; downward
• B) security issuers; upward
• C) investors; downward
• D) regulators; upward

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Definitions:

Unhappy

A state of dissatisfaction or sadness, often resulting from unmet expectations or adverse situations.

Automatic Thoughts

Refers to immediate, involuntary thoughts and assumptions that arise in response to specific situations.

Irrational Belief System

A psychological framework involving illogical or unrealistic beliefs that can lead to emotional and behavioral issues.

Aaron Beck

A psychiatrist known for pioneering cognitive therapy, which has been widely used in treating depression and other mental health disorders.