The Measurement of Credit Risk Under the Basel II Accord

Multiple Choice

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 options.
E) a standardized approach similar to that used under Basel I and an internal rating system in which they must adhere to strict methodological and disclosure standards.