The Purpose of the Countercyclical Buffer Proposed by Basel III

question 139

Multiple Choice

The purpose of the countercyclical buffer proposed by Basel III is to

• A)expose those banks with inadequate capital to survive economic downturns.
• B)assist insolvent banks build capital during economic expansions.
• C)protect the banking system and reduce systematic exposures to economic downturns.
• D)enhance global movement of funds to those countries experiencing excess aggregate credit growth.

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Definitions:

Fractured Dens

A break in the dens, which is a bony projection off the second cervical vertebra, potentially affecting spinal stability and nerve function.

Spina Bifida

A birth defect where there is an incomplete closing of the backbone and membranes around the spinal cord.

Vertebral Laminae

The vertebral laminae are flattened plates of bone originating from the pedicles of the vertebral arch, forming the posterior part of the vertebral foramen.

Coccyx

The coccyx, commonly known as the tailbone, is the small, triangular bone at the bottom of the spine, consisting of several fused vertebrae.