Question $1$

$........$ Calls for higher capital requirements to offset bank exposure due to derivative positions.

Basel I

Basel II

Basel III

Capital adequacy Act.

Banks are more highly leveraged $($less capital and more liabilities$)$ than manufacturing companies because their future cash inflows are much more predictable.

True

False

Question $3$

Pure arbitrage trading involves

purchasing an asset in one market at one price and selling it immediately in another market at a higher price.

$.$

simultaneous purchase and sale of similar shares in a single market

buying blocks of securities in anticipation of some information release.

exploitation of a difference between a company's current value and its estimated liquidation value.

purchase of stock in a company being acquired and the sale of stock in the acquiring company.