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) the clients of credit rating agencies used ratings to sell securities.
D) investors did not want rating downgrades.
E) credit rating agencies were paid by the firms who created the securities being rated.
Correct Answer:
Verified
Q2: Early in 2008, mark-to-market accounting provisions caused
Q3: Late in 2008, the International Accounting Standards
Q4: The 1933 Glass-Steagall Act precluded banks from:
A)practicing
Q5: Which of the following is not an
Q6: Goldman Sachs' GSAMP Trust was able to
Q7: These regulators were aware of the problem
Q8: According to former Federal Reserve chairman Alan
Q9: Some observers claim that the U.S. Federal
Q10: These entities worked as second-party consolidators by
Q11: Investors relied on the judgment of credit
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