Which of the following is not a weakness of the original 1988 Basel I risk-based
ID: 2716128 • Letter: W
Question
Which of the following is not a weakness of the original 1988 Basel I risk-based capital standards?
They ignore credit risk
They ignore changes in value due to currency value changes
They ignore market risk
They ignore interest rate risk
They ignore changes in value due to commodity price changes
A.They ignore credit risk
B.They ignore changes in value due to currency value changes
C.They ignore market risk
D.They ignore interest rate risk
E.They ignore changes in value due to commodity price changes
Explanation / Answer
Answer
B. They ignore changes in value due to currency value changes.