Which of the Following Is Not a Positive Effect of the Basel

question 5

Multiple Choice

Which of the following is not a positive effect of the Basel Accord?

• A) It forced regulators to change the way they thought about bank capital.
• B) It promoted a more uniform international system.
• C) It provided a framework that less developed countries could use to improve the regulation of their banks.
• D) It provided a system to differentiate between bonds based on their systemic risk.

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Definitions:

Technological Advance

Technological Advance refers to the development and application of new technologies and improvements to existing technologies, which can increase efficiency, productivity, and quality of products and services.

Productive Efficiency

A situation in which the economy or an economic system is able to produce the maximum amount of goods and services from a given amount of resources.

Technological Progressiveness

The rate at which an organization or society adopts and implements new technologies, enhancing productivity and innovation.

Industry Concentration Ratio

A metric that assesses the degree of market control held by the largest firms within an industry, indicating the level of competition.