Which of the Following Is a Possible Reason Why Credit

question 4

Multiple Choice

Which of the following is a possible reason why credit rating agencies incorrectly rated structured debt?

• A) incentive problems in the way credit rating agencies were paid
• B) the industry is collusive
• C) they were not overseen by the Securities and Exchange Commission
• D) the credit rating agencies were understaffed
• E) the credit rating agencies were losing profits before the crisis

---

Definitions:

Focused Contemplation

Deep reflection or concentration on a specific thought or idea, often for the purpose of reaching a deeper understanding or a decision.

Meditation

A practice of focused concentration or mindfulness, often involving deep breathing, to promote relaxation, awareness, and mental clarity.

Automatic Behavior

actions performed without conscious thought or intention, often as habits or learned responses, allowing efficient execution of routine tasks.

Uncertainty

The condition of being unsure or having doubts about something, often leading to a lack of confidence in decisions.