The proposed Basel II capital adequacy rules
A) address the incentive banks have to switch from riskier to safer assets.
B) avoid the use of statistical rules by relying mostly on "common sense."
C) use highly theoretical measures of risk.
D) will likely be adopted initially to a handful of large banks with significant international exposure.
D
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Using the AD-AS model, if consumers and business become more optimistic about the future direction of the economy and increase spending, then:
a. aggregate demand will decrease. b. aggregate demand will increase. c. long-run aggregate supply will increase. d. long-run aggregate supply will decrease.
People who buy stock in a corporation such as General Electric become
a. creditors of General Electric, so the benefits of holding the stock depend on General Electric's profits. b. creditors of General Electric, but the benefits of holding the stock do not depend on General Electric's profits. c. part owners of General Electric, so the benefits of holding the stock depend on General Electric's profits. d. part owners of General Electric, but the benefits of holding the stock do not depend on General Electric's profits.