The Buffer Proposed by Basel III That Is Designed to Ensure

question 89

Multiple Choice

The buffer proposed by Basel III that is designed to ensure that DTIs build up a capital surplus outside of periods of financial distress is called the

• A)Capital conservation buffer.
• B)Countercyclical buffer.
• C)Leverage buffer.
• D)Tier II buffer.
• E)CET1 capital buffer.

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Definitions:

Spinout

A situation where a vehicle loses traction, causing it to rotate uncontrollably.

Power Divider

A mechanical device in vehicles, particularly in heavy-duty trucks, that splits the driving force between the front and rear axles to improve traction.

Interaxle Differential

A mechanism that allows for differential speeds between the front and rear axles of a multi-axle vehicle, improving maneuverability and traction.

Controlled Traction

Differential gearing that uses a friction plate assembly to transfer drive torque from a slipping wheel (sensed by axle shaft spinout) to its opposite.