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:

NYSE

The New York Stock Exchange, one of the largest stock exchanges in the world, where stocks of public companies are bought and sold.

NASD

Was a self-regulatory organization for the U.S. securities industry, responsible for regulatory oversight, which is now part of FINRA (Financial Industry Regulatory Authority).

NASDAQ

The National Association of Securities Dealers Automated Quotations, an American stock exchange known for its high concentration of technology companies.

FDIC

The Federal Deposit Insurance Corporation, a United States government agency that provides deposit insurance to depositors in US banks.