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:

External Locus

A belief system where individuals perceive their outcomes in life as being largely controlled by external forces rather than their own efforts.

Locus of Control

Refers to an individual's belief system regarding the causes of his or her experiences and the factors to which that person attributes success or failure.

Adaptation-Level

A theory suggesting that people adapt to certain levels of stimuli and thus their perception of new stimuli is dependent on past experiences.

Type A Personality

A personality characterized by high levels of competitiveness, self-drive, impatience, and a constant sense of urgency.