Some claim that ratings agencies have a conflict of interest since:
A) they rate the quality of their own bonds
B) since agencies charge firms for their services rather than investors, they have an incentive to give high ratings to gain business
C) government began to include bond ratings as part of regulations of mutual funds, banks, and financial firms
D) they issued many of the mortgages that were later securitized into bonds
B
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The demand and supply schedules for pizza are in the table above. If the government sets a maximum legal price of $2 per slice of pizza, then
A) there is a shortage of 20 slices of pizza. B) this maximum price is an example of a price floor. C) this maximum price is an example of a price ceiling. D) Both answers A and C are correct. E) Both answers B and C are correct.
How are market price, average revenue, and marginal revenue related for a perfectly competitive firm and why?
What will be an ideal response?
Between the years 1870 and 1920, what happened to the agricultural labor force?
(a) It nearly doubled in numbers but declined significantly in its share of the total labor force. (b) It remained about the same in numbers and declined significantly as a percent of the total labor force. (c) It nearly doubled in numbers while remaining approximately the same percentage of the total labor force. (d) It declined both in numbers and as a percent of the total labor force.
Which of the following is true of matrix organizations?
A. Employees are more likely to focus on the overall business process rather than on their functional specialty. B. Influence costs are low as there are separate product and functional managers. C. Employees have strong incentives to cooperate with other teams within a company. D. There are well-defined lines of authority, eliminating scope of interdependence and lack of incentives.