Which of the following is not a weakness of Basel I risk-based capital standards?
A)They ignore interest rate risk
B)They ignore changes in value due to currency value changes
C)They ignore changes in value due to commodity price changes
D)They ignore credit risk
E)They ignore the market value

Question

Quizplus · Accepted Answer

Basel I risk-based capital standards did not ignore credit risk, but it was only partially included. The other options (A, B, C, and E) are all weaknesses of Basel I, as it did not consider interest rate risk, changes in currency and commodity prices, and market value.

Which of the Following Is Not a Weakness of Basel