Within the Framework of Pillar I, Which Basel Accord Introduced

question 5

Multiple Choice

Within the framework of Pillar I, which Basel Accord introduced two capital buffers: a capital conservation buffer and a countercyclical capital buffer?

• A)Basel I
• B)Basel II
• C)Basel 2.5
• D)Basel III

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Definitions:

Expected Opportunity Loss

A statistical determination of potential loss due to not selecting the optimal choice among different options.

Gross Profits

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Probability

A measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Rollback Technique

A decision analysis procedure used to solve decision trees backwards from the end nodes to the beginning, to find the sequence of decisions that maximizes the expected utility.