The motivation to distort ratings is determined by …
What will be an ideal response?
The motivation to distort ratings is determined by whether the rater expects any positive and negative consequences of rating distortions and the probability of experiencing such consequences if ratings are indeed distorted.
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Why are eurocredits not offered by any one bank?
A) They are typically regulated by the government to exclude single banks. B) They are typically very large and banks prefer to share the risk with other banks. C) The denominations are too large for any one bank's ability to fund the loan. D) Single banks are less likely to profit from them.
A home buyer buys a house for $2,155,000. She pays 20% cash, and takes a fixed-rate mortgage for ten years at 7.70% APR. If she makes semi-monthly payments, which of the following is closest to each of her payment?
A) $11,342.47 B) $10,311.34 C) $12,373.61 D) $8249.07