Which of the Following Statements Is True

question 13

Multiple Choice

Which of the following statements is true?

• A)Basel II broadened measures for measurement of capital and introduced the concept of two pillars to protect solvency of individual FIs whereas Basel III introduced liquidity and higher capital levels to protect the financial system in general.
• B)APRA introduced an enhanced Basel II called Basel 2.5 with new provisions that were difficult for Australian FIs to meet in the short term.
• C)Basel II set targets that were commensurate with the risk profile and environment in an endeavour to protect solvency of individual FIs whereas Basel III introduced liquidity and higher capital levels to protect the financial system in general.
• D)Basel III changes to capital requirements requires higher secondary capital levels to be held by FIs.

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Definitions:

Intent

The purpose or objective behind someone's actions or a particular design.

Instrumental Aggression

Behavior intended to achieve a goal other than causing pain, often used as a means to an end.

Types of Aggression

Categories or forms of aggressive behavior, often classified by motive or method, such as verbal, physical, reactive, or proactive aggression.

Induction

The process or action of bringing about or giving rise to something.