What Function Do Ratings Agencies Serve in the Financial Markets

question 83

Essay

What function do ratings agencies serve in the financial markets?

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Definitions:

Intimidation

The act of inducing fear or coercion to influence someone's behavior or decisions, often through threats or bullying.

Behavior Modification

A technique aiming to change an individual's behavior through reinforcement, punishment, and other strategies.

Extinction

In behavioral science, the process through which a previously reinforced behavior is weakened by no longer being followed by reinforcing consequences.

Ingratiating Tactic

A strategic behavior aimed at making oneself more likable or appealing to others, often used in social and workplace dynamics.