In the Basel II Standardised Approach to External Rating Grades,the

question 11

Multiple Choice

In the Basel II standardised approach to external rating grades,the asset counterparty weights for capital adequacy guidelines are:

• A) 10%, 20%, 50% and 100%.
• B) 10%, 50%, 100% and 150%.
• C) 20%, 50%, 100% and 150%.
• D) 20%, 50%, 100% and 200%.

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Definitions:

Demand

The desire to own anything, accompanied by the power and willingness to pay for it.

Technological Advance

Refers to improvements and innovations in technology that increase productivity and efficiency in various sectors of the economy.

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public services and government activities.

Minimum Wage

The lowest legal hourly pay that employers can offer to workers.