Investors relied on the judgment of credit rating agencies because:
A) Credit rating agencies are supposed to be the experts in evaluating credit risk
B) Information directly available to investors on mortgage pools was insufficient
C) Credit rating agencies are supposed to perform a thorough due diligence before rating a given security
D) All of the above
E) (a) and (c)
Correct Answer:
Verified
Q4: According to former Federal Reserve Chairman Alan
Q9: An issue with mark-to-market accounting when there
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
Q15: Rating agencies were exposed to a conflict
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
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