Georgia Assessments for the Certification of Educators GACE Practice Test

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Based on the credit ratings, which of the following correctly orders the businesses from least to most risky for investors?

  1. AAA, AA, BBB, BB

  2. AA, AAA, BBB, BB

  3. BBB, BB, AAA, AA

  4. BB, BBB, AA, AAA

The correct answer is: AAA, AA, BBB, BB

This order correctly arranges the businesses from least risky (AAA) to most risky (BB). Option B incorrectly places AA in second position, which is lower risk than AAA. Option C incorrectly places the lowest rating (BBB) in the middle, which implies it is less risky than the higher ratings. Option D is incorrect because it starts with BB, which is a higher level of risk than BBB.