Since Firms Issuing New Securities Pay to Have These Securities

question 72

Multiple Choice

Since firms issuing new securities pay to have these securities rated,the credit-rating agencies have incentive to ________ to attract more business.

• A) give favorable ratings
• B) give impartial ratings
• C) lower the fees they charge
• D) practice spinning

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Definitions:

Receptor

(1) In cell biology, a molecule on the surface of a

Clathrin

A protein that plays a critical role in the formation of coated vesicles, involved in the transport of molecules within cells.

Amphipathic

Refers to molecules having both hydrophobic (water-repelling) and hydrophilic (water-attracting) parts, enabling interactions with both water and lipids.

Cholesterol

A type of lipid found in the blood that is essential for building cells but can lead to heart disease if levels are too high.