Basel II improved the calculation of credit risk $($relative to Basel I$)$ in many ways. Which one of the following sentences is correct:

Question $7$Answer

a$.$

Under the standardized approach of Basel II$,$ all corporate loans carry the same risk weight

b$.$

Under the standardized approach of Basel II$,$ banks should consider the credit ratings to assign the appropriate credit risk weight.

c$.$

Under the standardized approach of Basel II$,$ claims from OECD banks carry a $20\%$ credit risk weight