Extended response style questions

4. What are the main shortcomings of Basel 1 and how Basel 2 overcame these? Likewise, discuss the main limitations of Basel 2 and the way Basel 3 resolves them. 5. Money lenders often charge very high interest rates. What are the justifications for this? 6. As part of managing financial crises, discuss the following resolutions: i. Recapitalise with public funds ii. Create an Asset Management Company iii. Create a Bridge Bank 4. What are the main shortcomings of Basel 1 and how Basel 2 overcame these? Likewise, discuss the main limitations of Basel 2 and the way Basel 3 resolves them. 5. Money lenders often charge very high interest rates. What are the justifications for this? 6. As part of managing financial crises, discuss the following resolutions: i. Recapitalise with public funds ii. Create an Asset Management Company iii. Create a Bridge Bank