Rating agencies were exposed to a conflict of interest because:
A) Credit rating agencies were rating securities and investing in those securities
B) Credit rating agencies used ratings to sell securities
C) Clients of the credit rating agencies used ratings to sell securities
D) Investors do not want rating downgrades
E) Credit rating agencies were paid by the firms who created the securities being rated
Correct Answer:
Verified
Q4: According to former Federal Reserve Chairman Alan
Q10: The 1933 Glass-Steagall Act precluded banks from:
A)Subprime
Q11: In simple terms, the securitization process is:
A)A
Q13: Mark-to-market accounting is usually related to all
Q14: Investors relied on the judgment of credit
Q16: Which of the following is NOT an
Q17: These entities worked as second party consolidators,
Q18: Early in 2008, mark-to-market accounting provisions caused
Q19: Mark-to-market accounting is incorrectly characterized as:
A)Relevant for
Q20: A fundamental problem with Goldman Sachs' GSAMP
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