Part of the Reason Why Credit Ratings Firms Did Not

question 6

Multiple Choice

Part of the reason why credit ratings firms did not catch major problems prior to the global financial meltdown of 2008 was because they were paid by the firms that they rank,which creates

• A)economies of scale.
• B)synergy.
• C)a conflict of interest.
• D)cooperation.
• E)efficiency.

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Definitions:

Individualists

Persons who prioritize personal independence and self-reliance, often valuing individual rights above those of the group.

Job Descriptions

Formal documents that outline the duties, responsibilities, required qualifications, and reporting relationships of a particular job.

Superordinate Powers

Refers to superior authority or power, often in the context of a hierarchical structure where certain entities have overarching control over others.

Interpersonal Commitment

A psychological and emotional agreement between individuals to support and be loyal to one another.