Which of the Following Is Not an Important Addition Made

question 73

Multiple Choice

Which of the following is not an important addition made to the Basel Accords by Basel III in 2010?

• A) It supplements capital requirements based on risk-weighted assets with restrictions on leverage.
• B) It introduces three buffers over and above capital requirements itself.
• C) It adds a liquidity requirement that compels banks to hold a quantity of high-quality liquid assets.
• D) It ends the too-big-to-fail problem.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to a normal good.

Normal Good

A type of good for which demand increases as the income of individuals increases, indicating a direct relationship between income and demand.

Demand-Increasing Factor

Elements or conditions that lead to an increase in demand for a product or service, such as a rise in consumer income or a change in tastes.