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How Did a Change in the Business Model for Bond

Question 23

Multiple Choice

How did a change in the business model for bond rating agencies contribute to a conflict of interest today?


A) Bond rating agencies now sell manuals of financial data to the purchasers of bonds.
B) Bond rating agencies are paid a fee by the federal government.
C) Bond rating agencies are now paid by the bond issuers.
D) Bond rating agencies now make roughly half their income from those who purchase bonds and half from those who issue bonds.

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