The U.S.Securities and Exchange Commission has designated just nine credit-rating agencies as "nationally recognized statistical rating organizations" (NRSROs),which include Moody's,Standard & Poor's,and Fitch Ratings.These agencies provide opinions on the creditworthiness of other entities and the financial obligations issued by them.Because so few companies can compete in it,the credit-rating industry would be considered a(n)
A)mega monopoly.
B)oligopoly.
C)pure competition.
D)monopolistic competition.
E)monopoly,

Question

Quizplus · Accepted Answer

An oligopoly is a market structure where a small number of firms dominate the market, which is the case with the credit-rating industry due to the few companies designated as NRSROs.

The USSecurities and Exchange Commission Has Designated Just Nine Credit-Rating Agencies