Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) Unilateral collateral obligations to sovereign counterparties provide liquidity to banks.
B) Under Basel III commercial banks are most likely to incur lower costs to service their sovereign clients.
C) While banks usually do not call for collateral from sovereign counterparties, they must provide collateral for the offsetting hedge transactions which are undertaken with commercial counterparties.
D) Uncollateralised exposures to sovereign counterparties will not require additional regulatory capital to be set aside against potential credit losses