Which of the Following Are Criticisms of a Risk-Based Capital

question 54

Multiple Choice

Which of the following are criticisms of a risk-based capital ratio?

• A)The risk-class categories might not adequately reflect riskiness.
• B)The 8% risk-based capital requirement has not created a level competitive playing field across banks.
• C)Credit risk portfolio diversification opportunities are largely ignored.
• D)All of the listed options are correct.

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Definitions:

Child Abuse

Any action by another person – adult or child – that causes significant harm to a child, including physical, emotional, sexual abuse, or neglect.

Cultural Factors

Elements that influence behaviors, beliefs, and practices, which are derived from social norms, traditions, and values of a culture.

Child Protective Services

Government agencies tasked with responding to reports of child abuse or neglect and providing services to protect and support affected children.

Confidentiality

The principle of keeping certain information private and not disclosing it without the consent of the person it pertains to.