Which of the following is part of the macro prudential toolkit?
A) Basel II and III agreements.
B) A maximum loan- to- value ratio.
C) Controls on capital flows.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

The macro prudential toolkit refers to a set of policies and measures that aim to promote financial stability at the system-wide level. Basel II and III agreements provide guidelines for banks to manage their risks and maintain adequate capital buffers. A maximum loan-to-value ratio sets a limit on the amount of credit that can be extended relative to the value of the underlying asset. Controls on capital flows can help to prevent excessive risk-taking and curb volatility in asset prices. Therefore, all of the above options are part of the macro prudential toolkit.

Which of the Following Is Part of the Macro Prudential