Which of the Following Statements Is True in the Context

question 26

Multiple Choice

Which of the following statements is true in the context of Basel II?

• A)The standardised approach is the most basic approach to calculating operational risk capital.
• B)FIs can choose whether or not to hold operational risk capital.
• C)In the basic indicator approach, operational risk capital is calculated as a fixed percentage of an FI's gross income figure, whereby gross income is defined as gross interest income plus gross non-interest income.
• D)None of the listed options are correct.

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Definitions:

Dollar Value

Refers to the worth of an item, product, or service expressed in terms of the amount of money that it can be bought or sold for in the market.

Differential Reinforcement

The process of reinforcing one response from a response class and neglecting to reinforce all other members of that class.

DRO

A behavior modification strategy that involves delivering reinforcement only when a specific undesired behavior has not occurred during a designated period.

DRA

Differential Reinforcement of Alternative behavior, a technique used to encourage positive behaviors while extinguishing undesired ones by reinforcing an alternative action.