Explain the Role of Ratings Agencies and the Part They

question 63

Essay

Explain the role of ratings agencies and the part they played in the GFC.

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Definitions:

Tenth Amendment

An amendment to the US Constitution that states powers not delegated to the federal government are reserved to the states or the people.

Constitution

The system of fundamental principles or established precedents according to which a state or other organization is governed.

Federalism

A system of government in which power is divided between a central (federal) government and regional (state or provincial) governments.

Checks and Balances

A system in government where each branch has the power to check or limit the actions of the other branches to prevent any single branch from becoming too powerful.