Pillar 3 of APRA's Supervision Framework Is to Encourage Market

question 19

Multiple Choice

Pillar 3 of APRA's supervision framework is to encourage market discipline through an information disclosure framework.Pillar 3 requires:

• A)qualitative disclosures for capital structure, capital adequacy and risk exposure
• B)quantitative disclosures for capital structure, capital adequacy and risk exposure
• C)comparison of the risk exposure, capital inadequacy and capital structure for FIs
• D)quantitative disclosures for risk management processes

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Definitions:

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Inferior Good

A type of good whose demand decreases when consumer income rises, unlike normal goods for which the opposite is true.

Marginal Utility

The additional satisfaction or utility gained by consuming an additional unit of a good or service.

Income Elasticity

It quantifies the sensitivity of the quantity demanded for a good to a change in consumer incomes, highlighting how demand varies as income levels shift.