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What Were the Big Bond-Rating Agencies Doing in the 2000s

Question 8

Multiple Choice

What were the big bond-rating agencies doing in the 2000s?


A) They were sounding the alarm about Enron and WorldCom and downgraded these companies years before either failed.
B) They were conducting business as usual and did not lower the bond ratings of Enron and WorldCom until after these companies failed.
C) They were sounding the alarm about Enron and WorldCom and downgraded these companies months before either failed.
D) They were nearly forced out of business by market forces.

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