The Risk-Based Capital Requirements Have Received Several Types of Criticism

question 132

Short Answer

The risk-based capital requirements have received several types of criticism.Please match the criticism headings below (as stated in the text)with the appropriate criticism explanations in questions 20-122 to 20-130.
-20-127 Interest rate and liquidity risks are not yet included in the proposed Basel II plan.
A)Competition
B)DI specialness
C)Excessive complexity
D)Impact on capital requirements
E)Other risks
F)Pillar 2 may ask too much of regulators
G)Portfolio aspects
H)Risk weights
I)Risk weights based on external credit rating agencies

• A)Competition
• B)DI specialness
• C)Excessive complexity
• D)Impact on capital requirements
• E)Other risks
• F)Pillar 2 may ask too much of regulators
• G)Portfolio aspects
• H)Risk weights
• I)Risk weights based on external credit rating agencies

Master the journalization of stock transactions including reacquisitions and sales.

Understand the taxation and legal entity designation options for limited liability companies.

Comprehend the conditions under which partners can withdraw assets.

Recognize how partnership income is shared among partners.

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Definitions:

Fast-growth Firms

Companies that experience rapid expansion in terms of revenue, profitability, or market share over a short period.

Viable Opportunities

Opportunities that present a realistic and achievable path for growth, development, or profit for a business or individual.

Bankruptcy Prospect

The potential or likelihood of a person or entity being declared legally unable to pay their debts.

Bargaining

The process of negotiating the terms of a contract or agreement between parties with different objectives.