Multiple Choice
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) Clients of the credit rating agencies used ratings to sell securities
D) Investors do not want rating downgrades
E) Credit rating agencies were paid by the firms who created the securities being rated
Correct Answer:

Verified
Correct Answer:
Verified
Q3: According to former Federal Reserve Chairman Alan
Q10: Late in 2008, the International Accounting Standards
Q11: Mark-to-market accounting is usually related to all
Q12: Goldman Sachs' GSAMP Trust was able to
Q14: In simple terms, a mortgage-backed security is:<br>A)A
Q15: The 1933 Glass-Steagall Act precluded banks from:<br>A)Subprime
Q16: A fundamental problem with Goldman Sachs' GSAMP
Q17: In simple terms, the securitization process is:<br>A)A
Q18: These regulators were aware of the problem
Q19: An issue with mark-to-market accounting when there