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Which of the Following Is a Possible Reason Why Credit

Question 15

Multiple Choice

Which of the following is a possible reason why credit rating agencies incorrectly rated structured debt?


A) incentive problems in the way credit rating agencies were paid
B) the industry is collusive
C) they were not overseen by the Securities and Exchange Commission
D) the credit rating agencies were understaffed
E) the credit rating agencies were losing profits before the crisis

Correct Answer:

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