Because Banks Engage in Regulatory Arbitrage,the Basel Accord on Risk-Based

question 95

Multiple Choice

Because banks engage in regulatory arbitrage,the Basel Accord on risk-based capital requirements may result in

• A)reduced risk taking by banks.
• B)reduced supervision of banks by regulators.
• C)increased fraudulent behavior by banks.
• D)increased risk taking by banks.

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Definitions:

Data Mining Techniques

Methods used to extract and identify useful information and patterns from large datasets.

Pivot Table

A data summarization tool that is used in data processing and spreadsheet programs to sort, rearrange, group, count, total, or average data stored in a database.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

SPSS Syntax

A command language used in the SPSS software for performing statistical analyses and manipulating data.