Which of the Following Statements Is True

question 13

Multiple Choice

Which of the following statements is true?

• A)Basel II broadened measures for measurement of capital and introduced the concept of two pillars to protect solvency of individual FIs whereas Basel III introduced liquidity and higher capital levels to protect the financial system in general.
• B)APRA introduced an enhanced Basel II called Basel 2.5 with new provisions that were difficult for Australian FIs to meet in the short term.
• C)Basel II set targets that were commensurate with the risk profile and environment in an endeavour to protect solvency of individual FIs whereas Basel III introduced liquidity and higher capital levels to protect the financial system in general.
• D)Basel III changes to capital requirements requires higher secondary capital levels to be held by FIs.

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Definitions:

Concentration of Ownership

A situation where a small number of individuals or companies control a large share of the market or resources.

Commercialism

A practice or attitude that places emphasis on the maximization of profit and the marketability of goods and services.

Upscale Demographics

A term used to describe a segment of the population that is characterized by high income, education, and occupation levels; often targeted by specific marketing strategies.

Weapons of Mass Destruction

Weapons capable of causing widespread death and destruction, including nuclear, chemical, and biological weapons.