20-99 the Basle Capital Requirements Are Based Upon the Premise

question 129

Multiple Choice

20-99 The Basle capital requirements are based upon the premise that

• A)banks with riskier assets should have higher capital ratios.
• B)banks with riskier assets should have lower capital ratios.
• C)banks with riskier assets should have lower absolute amounts of capital.
• D)banks with riskier assets should have higher absolute amounts of capital.
• E)there is no relationship between asset risk and capital.

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Definitions:

Imperfect Tender

A situation where the goods delivered or services rendered do not fully comply with the specifications or requirements outlined in a contract.

Imperfect Performance

A situation where the performance of a contractual obligation falls short of complete fulfillment.

Breach Of Contract

The failure to perform any term of a contract, written or verbal, without a legitimate legal excuse.

Frustrated Contract

A contract that, through no fault of either party, is unable to be fulfilled due to unforeseen circumstances, rendering the original terms of the contract void.