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      Question

      What is a Credit Rating Agency

      (CRA)?
      A A company that assigns ratings to countries Correct Answer Incorrect Answer
      B A company that assigns credit ratings to individuals Correct Answer Incorrect Answer
      C A company that assigns credit ratings to borrowers Correct Answer Incorrect Answer
      D A company that assigns credit ratings to companies only Correct Answer Incorrect Answer
      E A company that assigns ratings to banks only Correct Answer Incorrect Answer

      Solution

       A CRA is a company that assigns credit ratings to a borrower/prospective borrower by assessing its ability to pay back the debt by making timely payment of principal and interest payments.

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