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Which of the Below Statements Is FALSE

Question 5

Multiple Choice

Which of the below statements is FALSE?


A) Risk-based capital guidelines establish a credit risk weight for all assets where a weight depends on the credit risk associated with each asset.
B) There are four credit risk classifications for banks: 0%, 20%, 50%, and 100%, arrived at on no particular scientific basis.
C) The purpose of the Basel I Framework was to improve on the rules as set forth in the Basel I Framework by bringing risk-based capital requirements more in line with the underlying risks to which banks are exposed.
D) The Basel Committee has several subcommittees whose stated purpose is to promote consistency in its implementation of the guidelines.

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