ibps-so 2018 · Question 111 of 356

Which one of the following best expresses the central argument of the passage?

1. AThat the issuer-pays model is a genuine con ict of interest but a lesser evil than the belief that a rating says more than it does, an error which regulation itself entrenched by writing ratings into lawCorrect
2. BThat credit rating agencies are dishonest institutions whose opinions ought to be disregarded by every prudent investor
3. CThat the rotation of agencies among issuers is the single reform capable of restoring the credibility of the business
4. DThat ratings would be perfectly reliable if only the investor, rather than the issuer, could be persuaded to pay for them
5. EThat the reputation of an agency is a su cient safeguard and that no further remedy need be sought