Which of the Following Are Recommendations for Banking Regulation of the Basel

question 75

Multiple Choice

Which of the following are recommendations for banking regulation of the Basel accords?

• A) Assess the risk of different assets.
• B) Raise the importance of the leverage ratio.
• C) Allow switching of accounting techniques in a crisis.
• D) all of the above

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses and taxes from its total revenues.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating the amount contributed toward covering fixed costs and generating profit.

Units Sold

The total number of a product's units that have been sold during a certain period.

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold and treats fixed costs as period expenses.