The Primary Difference Between Basel I and the Proposed Basel

question 118

Multiple Choice

The primary difference between Basel I and the proposed Basel III in calculating risk-weighted assets is

• A)that Basel II considers OBS assets.
• B)the use of only three weight classes rather than four classes.
• C)a heavier reliance on the use of ratings by external credit rating agencies for the assignment of assets to weight classes.
• D)All of the options.
• E)that Basel II considers OBS assets as well as a heavier reliance on the use of ratings by external credit rating agencies for the assignment of assets to weight classes.

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Definitions:

Fiedler's Theory

A leadership model proposing that a leader's effectiveness is contingent on both their leadership style and the favorableness of the leadership situation.

Task-Motivated Leaders

Leaders who are primarily focused on achieving specific goals and completing tasks efficiently.

High Control

A management style or situation characterized by strict rules and a high degree of oversight and direction.

Low Control

Situations or environments where there is minimal regulation, guidance, or command, often leading to high autonomy but potentially high uncertainty as well.