23. What role did the credit-rating agencies play leading up to the start of the financial crisis in 2007? A) Inaccurate ratings provided by credit-rating agencies helped promote risk taking throughout the financial system. B) The credit-rating agencies were the first to see signs of trouble, and they developed more stringent standards as the housing bubble evolved. C) Solid ratings provided by credit-rating agencies helped limit risk taking throughout the financial system D) The credit-rating agencies were largely uninvolved with the financial crisis. 24. Moral hazard is an important consequence of insurance arrangements because the existence of insurance A) provides increased incentives for risk taking. B) impedes efficient risk taking. C) causes the private cost of the insured activity to increase. D) does both A and B of the above. E) does both B and C of the above