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Question
The measurement of credit risk under the Basel II Accord allows banks to choose between
A. a standardized approach similar to that used under Basel I.
B. a basic indicator approach that will cause banks to hold an additional 12 percent of capital.
C. an internal rating system in which they must adhere to strict methodological and disclosure standards.
D. All of the above.
E. Answers A and C only.
Answer
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Related questions
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The McCarran-Ferguson Act of 1945
A. separated commercial banking from insurance activities.
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C. stipulated that insurance companies are to be regulated at the state level.
D. initiated a national insurance guaranty fund.
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A. the expected payment commitment on existing policy contracts.
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A. Position trading.
B. Pure arbitrage.
C. Liquidity trading.
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A. has publicly-traded common stock.
B. provides equity funds to companies that already have publicly traded common stock.
C. is a subsidiary of a nonfinancial corporation.
D. provides debt funding to only to established corporations.
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Which of the following would be a key area of activity for an investment bank specializing in the commercial side of the business?
A. Purchase of existing securities.
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