Which of the following statements is incorrect?
A) The Basel Accord based capital requirements on a bank's risk level.
B) The Basel Accord forced banks with greater risk to maintain a higher level of capital.
C) The goal of the Basel II Accord is to properly account for a bank's risk so that the bank's capital requirements are in line with its corresponding risk.
D) The Basel II Accord will explicitly account for interest rate risk.
Correct Answer:
Verified
Q3: The Basel Accord
A)forces banks with greater risk
Q3: National banks are regulated by _, and
Q8: An "off-balance-sheet commitment" that provides the bank's
Q12: Which of the following statements is incorrect?
A)The
Q14: Which of the following is an "off-balance-sheet
Q15: The Depository Institutions Deregulation and Monetary Control
Q17: In general, a bank defines its value-at-risk
Q18: Regulation Q limited
A)consumer loan interest rates.
B)"off-balance-sheet commitments."
C)interest
Q18: Generally, the failure of small banks
A) causes
Q22: Bank A has a 10 percent capital
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