One Reason Why Rater Error Training (RET) Does Not Appear

question 69

Multiple Choice

One reason why Rater Error Training (RET) does not appear to improve rating accuracy is that:

• A)raters can never avoid making rating errors.
• B)raters are more concerned with politics than with rating accuracy.
• C)true halo may be occurring.
• D)the training takes too much time to implement.

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Definitions:

Compounding Interval

The frequency at which interest is applied to the principal sum of a loan or deposit, affecting the total interest earned or paid.

Compounded Nominal Rate

The rate of interest quoted for a period, usually a year, without taking into account the effect of compounding within that period.

Effective Rate

The actual interest rate of an investment or loan, taking into account the effect of compounding interest as opposed to the nominal or stated rate.

Annuity

A monetary product designed to deliver regular payouts, mainly aimed at funding retirees' income needs.