The Primary Difference Between Basel I and the Proposed Basel

question 28

Multiple Choice

The primary difference between Basel I and the proposed Basel III in calculating risk-adjusted assets is

• A)that Basel II considers OBS assets.
• B)the use of only three weight classes rather than four classes.
• C)a heavier reliance on the use of ratings by external credit rating agencies for the assignment of assets to weight classes.
• D)All of these.
• E)that Basel II considers OBS assets, and a heavier reliance on the use of ratings by external credit rating agencies for the assignment of assets to weight classes.

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Definitions:

Service Hours

A measure of the amount of labor time or effort that is provided by a company as a service.

Percentage Change

A mathematical calculation that indicates the degree of change over time, expressed as a percentage.

Price Decrease

A reduction in the monetary amount that consumers are required to pay to acquire a good or service.

Unit Sales

The total number of individual items or units that are sold within a specific period.