The Basel III Framework Proposes

question 47

Multiple Choice

The Basel III framework proposes

• A)lower capital requirements for banks to enable them to generate higher earnings to make up for their losses during the credit crisis.
• B)relying on the rating agencies to assess the risk of bank assets.
• C)increased capital requirements and liquidity requirements for banks.
• D)using the gap ratio to set the capital ratio.

Understand the establishment and replenishment of a petty cash fund.

Recognize the importance of maintaining a minimum cash balance (compensating balances).

Understand the objectives and implementation of internal control systems.

Identify and apply adjustments for bank statement and company books in bank reconciliations.

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Definitions:

Tunica Adventitia

Outermost fibrous coat of a vessel or an organ that is derived from the surrounding connective tissue.

Leydig Cells

Cells located in the testes that produce testosterone and other androgens, crucial for male reproductive and secondary sexual characteristics.

Testosterone

A primary male sex hormone that plays key roles in health and well-being, including the development of male sexual characteristics, muscle mass, and bone density.

Rete Testis

A network of tubules in the testes where sperm partially matures and is transported to the epididymis.