Which of the Following Statements Is True

question 36

Multiple Choice

Which of the following statements is true?

• A)Capital adequacy regulations of banks were introduced in 1989.
• B)Capital adequacy regulations require banks to hold, on average, less capital for low-risk assets such as housing loans compared to higher risk assets such as commercial loans.
• C)Capital adequacy regulations were abolished in 2000.
• D)Capital adequacy regulations of banks were introduced in 1989 and capital adequacy regulations require banks to maintain levels of capital adequate for the type of activity undertaken, on average, less capital for low-risk assets such as housing loans compared to higher risk assets such as commercial loans.

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