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Question
Basel II consists of three overlapping areas that are designed to bolster the safety and soundness of the financial system. The three areas include
I. regulatory capital requirements for credit, market, and operational risk.
II. eliminating complex risk-based capital requirements for on- and off-balance-sheet accounts.
III. ensuring that banks have sound internal control procedures in place to measure and limit risk.
IV. requirements to disclose to market participants the institution's capital structure, risk exposure, and capital adequacy.
V. increasing deposit insurance premiums on all accounts.
A. I, II, and III
B. I, III, and IV
C. II, III, and V
D. I, IV, and V
E. II, III, and IV
Answer
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