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Basel II was a response to shortcomings in the original Basel Accord (Basel I, 1988). In particular, Basel II revised the framework of Basel I
Basel II was a response to shortcomings in the original Basel Accord (Basel I, 1988). In particular, Basel II revised the framework of Basel I to adopt more risk-sensitive minimum capital adequacy requirements that take into account:
I. increased credit risk.
II. market risk associated with off-balance sheet trading activities.
III. operational risk, such as computer failure and fraud.
Which of the following is correct?
Multiple Choice
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I, II, and III.
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I only.
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II and III only.
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II only.
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III only.
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