One of the Reasons for the Development of Internal Risk

question 82

True/False

One of the reasons for the development of internal risk measurement models is the proposal of the BIS to impose capital requirements on the trading portfolios of FIs.

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Definitions:

Relations of Production

The relationships that exist in economic systems between those who own the means of production and those who sell their labor.

Capitalist System

An economic system where trade, industries, and the means of production are largely or entirely privately owned and operated for profit.

Exploitation

The difference between what workers are paid and the wealth they create for the owner.

Inequality

The unequal distribution of resources, rights, and opportunities among individuals or groups in a society.