The U.S. Securities and Exchange Commission has designated just nine credit-rating agencies as nationally recognized statistical rating organizations, which include Moody's, Standard & Poor's, and Fitch Ratings. These agencies provide opinions on the creditworthiness of other entities and the financial obligations issued by them. Because so few companies can compete in it, the credit-rating industry would be considered a(n)
A) mega monopoly.
B) oligopoly.
C) pure competition.
D) monopolistic competition.
E) pure monopoly.

Question

Quizplus · Accepted Answer

The credit-rating industry is considered an oligopoly because it is dominated by a small number of firms, such as Moody's, Standard & Poor's, and Fitch Ratings, which have significant control over the market.

The US Securities and Exchange Commission Has Designated Just Nine Credit-Rating