The Following Are the Advantages of Basel II Over Basel

question 70

Multiple Choice

The following are the advantages of Basel II over Basel I except that:

• A)it performs supervisory review of each bank's risk-assessment procedures.
• B)it provides for greater sensitivity to arbitrage and financial innovations.
• C)it applies the same minimum capital requirements to all banks.
• D)it broadens the types of risk considered.
• E)All are advantages of using Basel II.

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Definitions:

Muromachi

A period in Japanese history spanning from 1336 to 1573, characterized by the political and military rule of the Muromachi or Ashikaga shogunate.

Minimum Wage Law

Legislation that sets the lowest hourly wage rate that an employer can legally pay their employees.

Labor Demanded

The total amount of labor that employers are willing to hire at a given wage rate in an economic market.

Collective Bargaining

The negotiation process between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.