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

question 115

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.
-20-129 Because of different tax,accounting,and safety-net rules and the application of the new Basel II rules to different industries,a level playing field across banks in different countries will not occur.
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

Distinguish between observed and expected frequencies.

Understand the relevance of chi-square tests in assessing the goodness-of-fit.

Calculate expected frequencies for given data.

Recognize the conditions under which nonparametric tests are preferred over parametric tests.

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Definitions:

Activation

This term refers to the process of stimulating activity within the brain or body, leading to increased responsiveness or action.

Homeostasis

The tendency of a biological system to maintain stability while adjusting to conditions that are optimal for survival.

Vigor

Physical strength, good health, and energy, often used to describe a robust level of activity or vitality.

Olds and Milner

Psychologists known for their discovery of the "pleasure center" in the brain through experiments involving electrical stimulation of the rat brain.