Under the Basel Accord,assets and Off-Balance Sheet Activities Were Sorted

question 2

Multiple Choice

Under the Basel Accord,assets and off-balance sheet activities were sorted according to ________ categories with each category assigned a different weight to reflect the amount of ________.

• A)2;adverse selection
• B)2;credit risk
• C)4;adverse selection
• D)4;credit risk

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Definitions:

Punitive Damages

Monetary compensation awarded to a plaintiff, over and above actual damages, intended to punish the defendant for particularly egregious behavior.

Consequential Damages

Additional losses suffered as a direct consequence of a breach of contract, beyond the immediate scope of the contract itself.

Breach of Contract

The failure to perform as stipulated by the terms of a contract, which can result in legal consequences for the party in breach.

Injunction

A judicial order requiring a person to do or cease doing a specific action, preventing irreparable harm or injustice.