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:

Charge Differential

The difference in electric charge between two points, which can drive a current or induce movement of charges towards equalization.

Capacitor

Electrical charge storage device. Also known as a condenser.

Step-Up Transformer

A transformer that induces a higher voltage in its secondary coil by using a larger number of windings than in the primary coil.