The Primary Difference Between Basel I and the Proposed Basel

question 5

Multiple Choice

The primary difference between Basel I and the proposed Basel III in calculating risk-adjusted assets is

• A)that Basel II considers OBS assets.
• B)the use of only three weight classes rather than four classes.
• C)a heavier reliance on the use of ratings by external credit rating agencies for the assignment of assets to weight classes.
• D)All of the above.
• E)Answers A and C only.

---

Definitions:

Marginalized

Refers to individuals or groups that are pushed to the edge of society, resulting in limited access to resources and opportunities.

Discrimination

Negative behavior toward an individual solely on the basis of that person’s membership in a particular group.

Managerial Position

A role within an organization that involves overseeing the work of other employees and making decisions related to the management and operation of the business.

Latino Applicant

An individual of Latin American origin or descent who is applying for a position, program, or opportunity.