alleryStart learning →Which two agencies are named as the largest and best known assigners of bond ratings?
AFidelity and Vanguard
BGoldman Sachs and Citigroup
CCharles Schwab and E*Trade
DMoody's and Standard & Poor's
Answer & Solution
Correct answer: D. Moody's and Standard & Poor's
1. Bond ratings are letter grades assigned to bond issues to indicate their quality or level of risk.
2. The two largest and best-known rating agencies are Moody's and Standard and Poor's.
3. Fidelity and Vanguard sell mutual funds, Goldman Sachs and Citigroup are investment bankers, and Schwab and E*Trade are brokerages.
4. A bond's rating may change if the financial condition of the company changes.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.6 Securities Markets_
Keep practising Financial Management and Securities Markets
Browse all Financial Management and Securities Markets questions for US CMA Part 2, or explore more Financial Management topics.
Related questions
Since the Sarbanes-Oxley Act, what do CFOs consider their top priority?How did the NYSE answer the NASDAQ's head start in electronic trading?What does Regulation FD require of public companies?The Securities Investor Protection Corporation insures each customer's account up to what What is insider trading?What does the Securities Act of 1933 require of a new securities issue?Electronic communications networks let traders deal directly in what is known as which marThe NASDAQ lists more companies than the NYSE. On which measure does the NYSE still lead?