Choose the Correct Statement

question 44

Multiple Choice

Choose the correct statement:

• A)Basel II provides a better alignment of risks to borrowers than Basel I and remains the basis of the current measurement of credit-risk-adjusted assets.
• B)Basel I provides a better alignment of risks to borrowers than Basel II and remains the basis of the current measurement of credit-risk-adjusted assets.
• C)Basel III provides a better alignment of risks to borrowers than Basel II and remains the basis of the current measurement of credit-risk-adjusted assets.
• D)None of the listed options are correct.

---

Definitions:

Nominal Scale

A scale of measurement in which numbers are arbitrarily assigned to represent different categories or variables. The only math that can be applied to these numbers is calculation of the mode.

Arbitrarily Assigned

Assignments or classifications made without any specific criteria or reason, relying on random choice.

Interval Scale

A scale of measurement in which there are equal distances between measurements but no absolute zero reference point.

Equal Distances

In mathematics and statistics, a concept where the separation between points or values in a sequence or scale is consistent across the sequence.