Some of the Elements in Assessing Capital Adequacy Requirements for Banks

question 10

Multiple Choice

Some of the elements in assessing capital adequacy requirements for banks under the Basel II capital accord are:

• A) credit risk, liquidity risk and interest rate risk.
• B) credit risk, market risk and type of capital held.
• C) default risk, interest rate risk and market risk.
• D) default risk, liquidity risk and type of capital held.

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Definitions:

Cognitive Psychology

The branch of psychology that studies mental processes including how people think, perceive, remember, and learn.

Social Psychology

The scientific study of how individuals think, feel, and behave in the context of social interactions and how they are influenced by the actual or implied presence of others.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formulation, experimentation, and conclusion.

Margin of Error

A statistic expressing the amount of random sampling error in a survey's results, indicating how much the survey results may deviate from the actual population values.