Due to Criticisms of Rating Agencies Following the Default of Many

question 38

True/False

Due to criticisms of rating agencies following the default of many subprime products,the SEC prohibited credit rating agencies from structuring the same products that they rate.

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Definitions:

Network Recruiting

A recruitment strategy that utilizes an organization's existing employees' networks to identify and attract potential candidates.

Employee Leasing

The process of dismissing employees who are then hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employees.

Realistic Job Previews

An informational tool used by organizations to provide potential employees with a truthful view of what a job entails, encompassing both its positive and negative aspects.

Financial Industry

A sector of the economy comprised of firms and institutions that provide financial services to commercial and retail customers, including banks, investment companies, insurers, and brokers.