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Rating Agencies Were Exposed to a Conflict of Interest Because

Question 1

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) the clients of credit rating agencies used ratings to sell securities.
D) investors did not want rating downgrades.
E) credit rating agencies were paid by the firms who created the securities being rated.

Correct Answer:

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