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

---

Definitions:

Option's Disadvantages

The negative aspects or drawbacks associated with a particular choice or decision.

Sensitivity

The ability of a test or system to correctly identify those with a condition, reflecting how well it detects true positives.

Satisficed

Made a decision that is satisfactory and sufficient, stemming from the combination of "satisfy" and "suffice."

Optimal Choice

The best possible selection among various alternatives based on specific criteria or conditions.