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How do credit rating agencies help borrowers raise funds?

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Question

How do credit rating agencies help borrowers raise funds?

Options

  • By improving borrowers' credibility

  • By eliminating the need for securities

  • By making every borrower a stock broker

  • By replacing every borrowing with a demat account

MCQ
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Solution

Credit rating agencies improve borrowers' credibility. Greater credibility can help borrowers raise funds more easily.

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