Which of the Following Are Criticisms of a Risk-Based Capital

question 66

Multiple Choice

Which of the following are criticisms of a risk-based capital ratio?

• A) The risk-class categories might not adequately reflect riskiness.
• B) The 8 per cent risk-based capital requirement has not created a level competitive playing field across banks.
• C) Credit risk portfolio diversification opportunities are largely ignored.
• D) All of the listed options are correct.

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Capitalist System

An economic system where trade, industry, and the means of production are largely or entirely owned and operated by private individuals or companies for profit.

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Addiction

A chronic dysfunction of the brain system that involves reward, motivation, and memory, characterized by a compulsive pursuit of certain stimuli despite adverse consequences.

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