20-109 the Primary Difference Between Basel I and the Proposed

question 44

Multiple Choice

20-109 The primary difference between Basel I and the proposed Basel II in converting OBS values to on-balance-sheet credit equivalent amounts is

• A)the use of credit ratings in Basel II to assign credit risk weights on the OBS activities.
• B)the use of six weight classes by Basel II rather than four classes.
• C)the use of the underlying counterparty activity in Basel II to assign credit risk weights on the OBS activities.
• D)All of the above.
• E)Answers A and C only.