Under Basel Rules the Risk Weight for MA-Rated Claims on Corporate

question 246

Multiple Choice

Under Basel rules the risk weight for MA-rated claims on corporate in the standardized approach

• A) 0%
• B) 15%
• C) 20%
• D) 75%

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Definitions:

Standard Cost Per Mip

Standard cost per MIP refers to the benchmark or predetermined cost assigned to manufacturing one unit of measurement or milepost in production, used for budgeting and performance evaluation.

Direct Labour

Compensation for employees who are directly involved in manufacturing products or providing services.

Direct Materials

Raw materials that can be directly traced to the production of a specific product.

Materials Price Variance

The difference between the actual cost of raw materials and the expected cost at standard prices.