20-47 the Use of Risk-Based Capital Measures Under Basel I

question 77

True/False

20-47 The use of risk-based capital measures under Basel I effectively mark-to-market the bank's on- and off-balance-sheet for the purpose of reflecting credit and market risk.

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Definitions:

Profit-Sharing Plans

A type of incentive program by which employees receive a portion of the company's profits, typically distributed as bonuses or retirement fund contributions.

Gain-Sharing Plans

Incentive strategies that reward employees for their contributions to a company's success, usually through improved efficiency and productivity, resulting in financial gains shared among staff.

Monetary

Pertaining to money or currency, especially in terms of the management, circulation, and control of money in an economy.

Net Profits

The amount of money that remains after all operating expenses, taxes, and interest are deducted from a company's total revenue.