During the 2007-2009 financial crisis,housing prices began to fall and subprime mortgages began to default.Which of the following statements is true about the rating of subprime mortgage products?

Question

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Many AAA-rated subprime products had to be downgraded over and over again until they reached junk status. Rating agencies had given AAA ratings to many subprime mortgage products, which eventually defaulted and caused significant losses to investors. The agencies were criticized for their role in the financial crisis and accused of having conflicts of interest.

During the 2007-2009 Financial Crisis,housing Prices Began to Fall and Subprime