Choose the Correct Statement

question 6

Multiple Choice

Choose the correct statement:

• A)The countercyclical capital buffer has a microeconomic focus and aims to ensure that financial system capital requirements are sufficient given the political environment in which DIs operate.
• B)The countercyclical capital buffer has a political focus and aims to ensure that financial system capital requirements are sufficient given the economic environment in which DIs operate.
• C)The countercyclical capital buffer has a macroeconomic focus and aims to ensure that financial system capital requirements are sufficient given the macro-financial environment in which DIs operate.
• D)None of the listed options are correct.

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Definitions:

Managerial Accounting

A branch of accounting focused on providing financial data and analysis to managers within organizations to inform decision-making.

Prescriptive

Pertaining to the detailed specification of a set of recommendations or rules designed to solve a problem or improve a situation.

Restrictive

Describing policies, practices, or measures that limit or control the actions and freedoms of individuals or groups.

Internal Control

Processes adopted by organizations to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.