Practice Credit Rating Agencies - 2.5 | Chapter 5: Business Regulators and Intermediaries | ICSE Class 12 Business Studies
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the primary function of a Credit Rating Agency?

πŸ’‘ Hint: Think about what helps investors make informed decisions.

Question 2

Easy

Name one Credit Rating Agency from India.

πŸ’‘ Hint: These agencies help evaluate companies' creditworthiness.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What does a 'AAA' credit rating indicate?

  • High risk
  • Low risk
  • Moderate risk

πŸ’‘ Hint: Remember the safest rating on the CRA scale.

Question 2

True or False: A credit rating downgrade always leads to lower interest rates on loans.

  • True
  • False

πŸ’‘ Hint: Think about how risk is related to borrowing costs.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

If a company’s credit rating is downgraded, analyze how this might impact its stock prices and investor relations.

πŸ’‘ Hint: Think about how market perception shifts with credit ratings.

Question 2

Evaluate the effects of having high transparency in credit ratings on investor behavior and market confidence.

πŸ’‘ Hint: Consider how clear information influences investor actions.

Challenge and get performance evaluation