(i)Define and describe Credit Rating Agencies and their major operations within the global financial system. Do they satisfy these roles, especially in terms of anticipating future financial turmoils? (40 marks)

(ii)Many commentators state that misleading credit ratings had a direct and immense effect on the development of the Global Financial Crisis. Provide your personal view on this statement, using examples from the recent crisis to support your arguments.(20 marks)

(iii)Given the above criticism of Credit Rating Agencies , the idea of the creation of a European Credit Rating Agent has been put forward by some European policy makers. Describe and discuss the potential positive and negative effects of this proposal.(20 marks)

(iv)What would be your suggestions, as regulatory experts, to improveCredit Rating Agents' performance in risk assessments?(20 marks)