The Implementation of BIS Capital Requirements May Be Expected to

question 74

Multiple Choice

The implementation of BIS capital requirements may be expected to

• A)increase the downward trend in loan sales because of higher required capital levels.
• B)increase the downward trend in loan sales because of the use of risk adjusted assets.
• C)decrease the downward trend in loan sales because of the use of risk adjusted assets.
• D)decrease the downward trend in loan sales because of higher required capital levels.
• E)decrease the downward trend in loan sales because of the use of risk adjusted assets and because of higher required capital levels.

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Definitions:

Close Account Year-End

The process of updating account balances and summarizing a company's financial activities to prepare for the next accounting period.

Interest Revenue

Income earned from lending funds or through investing in interest-bearing financial instruments.

Gain Sale Building

The profit realized from the sale of a building asset.

Balance Sheet

A report documenting an organization's financial status, including its assets, liabilities, and the equity owned by shareholders, as of a certain date.