Basel III's Reforms to Bank Liquidity Requirements Do NOT Require

question 7

Multiple Choice

Basel III's reforms to bank liquidity requirements do NOT require banks to:

• A)hold increased balances in their exchange settlement accounts
• B)increase their holdings of high-quality liquid securities
• C)be able to cover their net cash outflows for at least 30 days in the event the financial markets cease to function
• D)make greater use of 'stable' funding sources
• E)increase their holdings of government securities.

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Definitions:

Pluralist Model

A theory in political science and sociology that views power as distributed among many competing interest groups in society, promoting diversity and equality.

Functionalist

A perspective in sociology that emphasizes the importance of each part of society and its necessary role in maintaining the whole.

Conflict Theory

is a sociological perspective that views social life as a competition and focuses on the distribution of resources, power, and inequality.

Congress Representation

The process by which citizens are represented in Congress, the legislative body of the United States, typically through elected officials.