Which are the benefits of credit-rating to investors?a.All of theseb.Saving of resourcesc.Credibility of issuesd.Safeguard against bankruptcy
Question
Which are the benefits of credit-rating to investors?a.All of theseb.Saving of resourcesc.Credibility of issuesd.Safeguard against bankruptcy
Solution
The benefits of credit-rating to investors include:
a. All of these: This option implies that all the listed benefits apply. Credit-rating provides multiple benefits to investors, which are further detailed in the following options.
b. Saving of resources: Credit ratings provide an assessment of a debtor's ability to repay their debt. This information can save investors time and resources that they would otherwise spend on conducting their own research and analysis.
c. Credibility of issues: Credit ratings can enhance the credibility of financial instruments. A high credit rating indicates that the issue has a low risk of default, which can make it more attractive to investors.
d. Safeguard against bankruptcy: Credit ratings can serve as a safeguard against bankruptcy. A low credit rating can signal a high risk of default, which can help investors avoid potentially risky investments.
Therefore, the answer is a. All of these.
Similar Questions
Credit is a helpful tool because it:A.prevents lenders from charging higher interest rates in the future.B.rewards people for saving a percentage of their earnings.C.ensures that people do not overspend or exceed their ability to pay.D.allows people to borrow money that can be paid back later.SUBMITarrow_backPREVIOUS
Which is a benefit of maintaining a high credit score?A.Paying lower interest rates on loansB.Increasing your debt-to-credit ratioC.Paying higher interest rates on loansD.Opening as many credit accounts as you wantSUBMITarrow_backPREVIOUS
evaluationof credit risk
Consumers are most likely to have a good credit score if they:A.never miss their monthly credit card payments.B.fully complete a credit card application.C.reach the credit limit on multiple credit cards.D.file for bankruptcy to have their debts forgiven.
‘Credit risk’ reflects the __________ in the quality of assets of a financial institution and consequent potential __________ to the financial institution. Deterioration; gain Deterioration; Loss Improvement; loss
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.