Which of the following statements is true?

Question

Quizplus · Accepted Answer

The statement "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" is true. Option A is partially true, as it only mentions the year of introduction of capital adequacy regulations but does not provide complete information about them. Option B is incorrect as capital adequacy regulations require banks to hold more capital for high-risk assets and less capital for low-risk assets. Option C is false as capital adequacy regulations are still in effect in most countries.

Which of the Following Statements Is True