Asked by

Family Jewels
on Dec 13, 2024

verifed

Verified

The U.S. Securities and Exchange Commission has designated just nine credit-rating agencies as nationally recognized statistical rating organizations, which include Moody's, Standard & Poor's, and Fitch Ratings. These agencies provide opinions on the creditworthiness of other entities and the financial obligations issued by them. Because so few companies can compete in it, the credit-rating industry would be considered a(n)

A) mega monopoly.
B) oligopoly.
C) pure competition.
D) monopolistic competition.
E) pure monopoly.

Credit-Rating Industry

The sector of the financial industry that provides assessments of the creditworthiness of borrowers to potential lenders.

Nationally Recognized

A status achieved by entities, individuals, products, or brands that are widely acknowledged and esteemed across an entire country.

Statistical Rating Organizations

Entities that provide assessments of the creditworthiness of issuers of financial instruments through ratings.

  • Elucidate and differentiate between several forms of competitive market environments.
verifed

Verified Answer

LL
leong lapyinDec 18, 2024
Final Answer:
Get Full Answer