Which of the Following Is Not True Regarding the Basel

question 66

Multiple Choice

Which of the following is not true regarding the Basel 2 proposal to reform the original 1988 Basel Accord?

• A) It attempts to link capital requirements more closely to actual risk by expanding the number of risk categories.
• B) It focuses on assessing the quality of risk management in banking institutions.
• C) It attempts to improve market discipline by requiring increased disclosure of pertinent information about banks.
• D) It has been well received by banks and national regulatory agencies.

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Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different consumers, based on their willingness to pay.

Durable Good

A consumer good with an expected life (use) of three or more years.

Elastic Demand

A situation in which the demand for a product or service changes significantly in response to changes in price.

Concession Items

Products sold typically at entertainment venues, such as cinemas or sports arenas, often comprising snacks, drinks, and other quick-service foods.