Under Basel III, Globally Systematically Important Banks (G-SIBs) Were Identified

question 130

Multiple Choice

Under Basel III, Globally Systematically Important Banks (G-SIBs) were identified by the Bank for International Settlements (BIS) by all of the following indicators except:

• A)Size.
• B)Lack of substitutes for the institution's services.
• C)Cross-jurisdictional activity.
• D)Interconnectedness with other institutions.
• E)Ability to obtain insurance or other guarantees on deposits.

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Definitions:

Tax Advantage

Financial benefits that accrue due to preferential tax treatment of certain investments or transactions.

Corporate Bond

A type of debt security issued by corporations to raise capital, where the corporation promises to repay the principal along with interest at a specified future date.

Municipal Bond

A debt security issued by municipalities to finance public projects, such as roads and schools, typically offering tax-free interest payments to investors.

U.S. Government Bond

A debt security issued by the United States Department of the Treasury to support government spending, considered a low-risk investment.