Under the Basel Accord,assets and Off-Balance Sheet Activities Were Sorted

question 2

Multiple Choice

Under the Basel Accord,assets and off-balance sheet activities were sorted according to ________ categories with each category assigned a different weight to reflect the amount of ________.

• A)2;adverse selection
• B)2;credit risk
• C)4;adverse selection
• D)4;credit risk

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Definitions:

Cash And Carry

A policy adopted by the United States prior to entering World War II that allowed the sale of materials to belligerents, as long as they paid in cash and transported the goods themselves.

Great Britain

The island nation comprising England, Scotland, and Wales, which is part of the United Kingdom.

Pearl Harbor Attack

A surprise military strike by the Imperial Japanese Navy Air Service against the United States naval base at Pearl Harbor, Hawaii, on December 7, 1941, leading to the United States' entry into World War II.

Surprise Attack

A military tactic involving an unexpected assault on an adversary, with the intent of catching them off guard and gaining a tactical advantage.