What was created to protect banks from overextending themselves and becoming insolvent?
A)The Computer Fraud and Abuse Act
B)Basel II
C)Intellectual Property Act of Internet Access
D)Federal Privacy Act of 1974

Question

Quizplus · Accepted Answer

Basel II was created to protect banks from overextending themselves and becoming insolvent. The original Basel Capital Accord implemented a system for establishing the minimum amount of capital that member financial institutions were required to keep on hand. In November 2006, the Basel II Accord went into effect. Basel II takes a more refined approach to determining the actual exposure to risk of each financial institution and taking risk mitigation into consideration to provide an incentive for member institutions to focus on and invest in security measures.

What Was Created to Protect Banks from Overextending Themselves and Becoming