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.

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