2.5 - Credit Rating Agencies
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Practice Questions
Test your understanding with targeted questions
What is the primary function of a Credit Rating Agency?
💡 Hint: Think about what helps investors make informed decisions.
Name one Credit Rating Agency from India.
💡 Hint: These agencies help evaluate companies' creditworthiness.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does a 'AAA' credit rating indicate?
💡 Hint: Remember the safest rating on the CRA scale.
True or False: A credit rating downgrade always leads to lower interest rates on loans.
💡 Hint: Think about how risk is related to borrowing costs.
1 more question available
Challenge Problems
Push your limits with advanced challenges
If a company’s credit rating is downgraded, analyze how this might impact its stock prices and investor relations.
💡 Hint: Think about how market perception shifts with credit ratings.
Evaluate the effects of having high transparency in credit ratings on investor behavior and market confidence.
💡 Hint: Consider how clear information influences investor actions.
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