Recently enacted international bank capital standards (the Basel standards)require banks to hold the most capital for ______________,less capital for ______________,and the least capital for ______________ due to the different risk weightings.

Question

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The Basel standards require banks to hold the most capital for business loans due to their higher risk, less capital for home mortgages, and the least capital for Treasury bonds, which are considered the safest.

Recently Enacted International Bank Capital Standards (The Basel Standards)require Banks