Which of the following is NOT a reason that credit ratings agencies became more relevant beginning in the late 1970s?
A)the number of bond defaults rose due to periods of recession and inflation
B)rating agencies began to charge investors for their services
C)governments began to include bond ratings in their regulation of banks, mutual funds, and other financial firms
D)rating agencies began to rate bonds issued by foreign governments and firms

Question

Quizplus · Accepted Answer

Credit ratings agencies became more relevant in the late 1970s for several reasons, including the rise in bond defaults due to economic turmoil (A), the inclusion of bond ratings in government regulations (C), and the expansion of ratings to foreign bonds (D). However, agencies did not begin charging investors for their services until later, so B is not a reason for their increased relevance at that time.

Which of the Following Is NOT a Reason That Credit