Which of the Following Statements Is True in the Context

question 26

Multiple Choice

Which of the following statements is true in the context of Basel II?

• A)The standardised approach is the most basic approach to calculating operational risk capital.
• B)FIs can choose whether or not to hold operational risk capital.
• C)In the basic indicator approach, operational risk capital is calculated as a fixed percentage of an FI's gross income figure, whereby gross income is defined as gross interest income plus gross non-interest income.
• D)None of the listed options are correct.

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Definitions:

Ambiguous Stimulus

Any object, event, or situation that lacks clear interpretation or meaning and can be perceived in multiple ways.

Projective Test

A type of psychological test designed to let a person respond to ambiguous stimuli, potentially revealing hidden emotions and internal conflicts.

MMPI

The Minnesota Multiphasic Personality Inventory, a test used in mental health to assess and diagnose mental disorders.

Psychologist

A professional specialized in the study of the mind and behavior, who conducts research and provides assessments, diagnosis, and treatment for mental disorders.