Because Banks Engage in Regulatory Arbitrage,the Basel Accord on Risk-Based

question 95

Multiple Choice

Because banks engage in regulatory arbitrage,the Basel Accord on risk-based capital requirements may result in

• A)reduced risk taking by banks.
• B)reduced supervision of banks by regulators.
• C)increased fraudulent behavior by banks.
• D)increased risk taking by banks.

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Definitions:

Blade

A thin, flat edge or surface used for cutting or shaping materials, found in tools such as knives, swords, and blades of grass.

Neolithic Transition

The period marking the shift from hunting and gathering communities to agricultural and settlement societies, bringing about significant changes in human lifestyle and culture.

Mammoths

Extinct large mammals closely related to modern elephants, lived in various parts of the world during the Ice Age, known for their long tusks and woolly coats.