What are some of the limitations to the Basel I and Basel II Accords? (Select all that apply.) | A. Risk weights are dependent on credit ratings, which can be unreliable, particularly in financial crises. B. In practice, the risk weights can differ substantially from the actual risk the bank faces. C. Banks hold more capital when times are good but less when times are bad, thereby, exacerbating credit cycles. | D. Banks have to have sufficient capital to weather the kind of financial disruption that occurred during this period. How does the Basel III Accord attempt to address the shortfalls of the Baselland Basel II Accords? (Select all that apply.) A. Allocating assets and off-balance sheets activities into four main categories B. Requiring firms to have access to more stable funding to increase liquidity C. Raising capital requirements in good times and lowering them in bad times OD. Ensuring that the final documentation for Basel III is complex and as detailed as possible E. Establishing new rules on the use of credit ratings