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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_
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