Which of the following is NOT a reason that credit ratings agencies became more relevant beginning in the late 1970s?
A) The number of bond defaults rose due to periods of recession and inflation.
B) Rating agencies began to charge investors for their services.
C) Governments began to include bond ratings in their regulation of banks, mutual funds, and other financial firms.
D) Rating agencies began to rate bonds issued by foreign governments and firms.

Question

Quizplus · Accepted Answer

Credit rating agencies becoming more relevant in the late 1970s was mainly due to the increase in bond defaults, the inclusion of bond ratings in government regulations, and the expansion of rating bonds issued by foreign governments and firms. However, the fact that rating agencies began to charge investors for their services is not a reason for their increased relevance.

Which of the Following Is NOT a Reason That Credit