Under Basel III, Globally Systematically Important Banks (G-SIBs) Were Identified

question 130

Multiple Choice

Under Basel III, Globally Systematically Important Banks (G-SIBs) were identified by the Bank for International Settlements (BIS) by all of the following indicators except:

• A)Size.
• B)Lack of substitutes for the institution's services.
• C)Cross-jurisdictional activity.
• D)Interconnectedness with other institutions.
• E)Ability to obtain insurance or other guarantees on deposits.

---

Definitions:

International Trade Agreements

Treaties between two or more nations that outline the rules and regulations for trade between them, facilitating smoother and increased trade.

Monetary Unions

Monetary unions are agreements between two or more states to share a common currency and monetary policy, aimed at facilitating economic stability and integration, such as the European Monetary Union.

Currency Exchange Rate

The price of one country’s currency in terms of another country’s currency.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.