The Buffer Proposed by Basel III That Is Designed to Ensure

question 92

Multiple Choice

The buffer proposed by Basel III that is designed to ensure that DIs build up a capital surplus outside of periods of financial distress is called the

• A)Capital conservation buffer.
• B)Countercyclical buffer.
• C)Leverage buffer.
• D)Tier II buffer.
• E)CET1 capital buffer.

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Definitions:

Unjustly Enriched

A legal concept referring to a situation where a person or entity benefits at another’s expense without a legal justification, often leading to restitution.

Stated Price

The specific price that is set and declared in a contract or agreement for goods or services.

Remedies

Legal means for a party to enforce a right or redress a wrong.

Breach

The violation or non-fulfillment of a legal obligation, contract, or duty, which may result in legal action for remedy.