QUESTION 48

The Basel Committee on Banking Supervision prescribes risk-based standards for capital adequacy and liquidity. Which of the following is a goal stipulated by the Basel Committee? [I] Improve the consistency of capital requirements across banks in different countries [II] Encourage a greater level of risk management practices especially among international financial institutions [III] Increase the deposit insurance coverage for all banks [IV] Make regulatory capital more risk sensitive [V] Increase the spread between the deposit rate and the lending rate so as to improve the net interest margin of banks [VI] Ensure that banks have sufficient high-quality liquid assets to cover their net cash flows

		I, III, V
		II, III, IV, V
		I, II, IV, VI
		All are correct

1 points

QUESTION 49

The Basel Accords contain a set of recommendations on bank regulation, supervision, and risk management issued by the:

		Basel Committee on Banking Supervision
		Federal Reserve System of the United States
		International Monetary Fund (IMF)
		Bank for International Settlements

1 points

QUESTION 50

Under Basel III, total regulatory capital now includes [I] Tier 1 capital, [II] Capital conservation buffer, [III] Countercyclical capital buffer, and [IV] additional capital for systemically important banks.

		I, II only
		II and IV only
		II, III, IV only
		All are included