20-116 Which Approach Used in Calculating Capital to Cover Operational

question 95

Multiple Choice

20-116 Which approach used in calculating capital to cover operational risk allow banks to rely on internal data for the calculation of regulatory capital requirements?

• A)Standardized approach.
• B)Advanced measurement approach.
• C)Basic indicator approach.
• D)Internal ratings-based approach.
• E)All of the above.

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Definitions:

Piaget

Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development stages.

Formal Operations

The stage in Piaget’s theory of cognitive development where individuals gain the ability to think abstractly, reason logically, and form hypotheses, typically beginning in adolescence.

Second-Order Operations

In cognitive development, refers to more complex processes where individuals can think about their own thoughts or reflect on the operation of thought itself.

Abstract Qualities

Attributes or concepts that are not tangible or concrete, such as ideas, values, and emotions, and require a level of abstract thinking to understand.