Evidence suggests that credit-rating agencies ________ exploited conflicts of interest because ________
A) have not; it would cause their ratings to lose credibility and thus have a lower value in the marketplace
B) have not; they would have an increase in profits in the long-run
C) have; it would cause their ratings to lose credibility and thus have a lower value in the marketplace
D) have; they would have an increase in profits in the long-run
A
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Refer to Table 15-1. What is the firm's profit-maximizing output and what is the price charged to sell this output?
A) P = $65; Q = 14 B) P = $70; Q = 13 C) P = $80; Q = 11 D) P = $85; Q = 10
Fixing the financial system after the Great Recession meant:
a. Finding a way to make the banking and general financial systems solvent, and solving the nation's illiquidity problems. b. Finding private (domestic and foreign) private buyers for U.S. subprime loans. c.Changing banking rules so there was more financial competition. d. Opening long-term financing sources, which would allow banks, companies, and the U.S. government to fund their long-term needs, such as new branches, plants, and infrastructure (e.g., bridges and dams) needs.