Choose the Correct Statement

question 44

Multiple Choice

Choose the correct statement:

• A)Basel II provides a better alignment of risks to borrowers than Basel I and remains the basis of the current measurement of credit-risk-adjusted assets.
• B)Basel I provides a better alignment of risks to borrowers than Basel II and remains the basis of the current measurement of credit-risk-adjusted assets.
• C)Basel III provides a better alignment of risks to borrowers than Basel II and remains the basis of the current measurement of credit-risk-adjusted assets.
• D)None of the listed options are correct.

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Definitions:

Net Income

Net income refers to the total profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.

Owned Subsidiary

A company whose majority of shares or voting rights are held by another company, making it a controlling entity.

Equity Method

The equity method is an accounting technique used by firms to assess the profits earned by their investments in other companies by reporting these profits in proportion to their ownership.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue. It indicates the company's financial performance over a specified period.