4. In January 2003, the U.S. SEC published a report on the role and function of CRAs in the operation of the securities markets. Part 2 of the report provides a background discussion of how credit ratings have become incorporated into the U.S. regulatory framework. The report states:

During the past 30 years, regulators, including the Commission, have increasingly used credit ratings to help monitor the risk of investments held by regulated entities, and to provide an appropriate disclosure framework for securities of differing risks.19 Give at least two examples of how regulators have used credit ratings to do the stipulated activities.