Multiple Choice
The primary difference between Basel I and the proposed Basel III in calculating risk-weighted assets is
A) that Basel II considers OBS assets.
B) the use of only three weight classes rather than four classes.
C) a heavier reliance on the use of ratings by external credit rating agencies for the assignment of assets to weight classes.
D) All of the options.
E) that Basel II considers OBS assets as well as a heavier reliance on the use of ratings by external credit rating agencies for the assignment of assets to weight classes.
Correct Answer:

Verified
Correct Answer:
Verified
Q113: Under market value accounting methods, FIs<br>A)must write
Q114: Which of the following assets is deducted
Q115: When a substandard loan is identified by
Q116: Market value accounting often is criticized because
Q117: The book value of bonds and loans
Q119: The book value of equity is seldom
Q120: The function of capital to serve as
Q121: Regulatory-defined capital and required leverage ratios are
Q122: The SEC requires securities firms to follow
Q123: Under Basel III a depository institution's capital