In the standardised approach of estimating credit risk in Pillar 1 of Basel III, banks:Question 4Select one:a.provides its own estimates for all credit risk items.b.estimate its own probability of default and effective maturity, while regulator-defined estimates for other credit risk components are used.c.provides its own estimates for all interest rate risk items.d.assign each balance sheet assets and each off-balance sheet item a risk weight that is derived from either an approved external ratings agency or a weight specified by the regulator.

Basel I primarily used which approach to calculate credit risk?  A. Internal ratings-based approach  B. Standardized approach  C. Advanced measurement approach  D. Basic indicator approach

Which of the following are NOT the parts of Basel III framework:I. Pillar 1 consisting of Credit Risk, Operational Risk and Default Risk componentsII. Value at Risk models as a standardised approach to Credit RiskIII. Supervisory Review of solvency IV. Market Discipline requirements encouraging institutions to disclose relevant information only to its shareholders

Which type of risk was not explicitly addressed by Basel I?  A. Credit risk  B. Market risk  C. Operational risk  D. Settlement risk

Which new type of risk was introduced in the Basel II framework?  A. Credit risk  B. Market risk  C. Operational risk  D. Settlement risk

In reference to Basel Accord minimum bank capital adequacy requirements, risk-weighted assetsMultiple Choicerefers to traditional bank loans.refers to a "risk-focused" approach to determining adequate bank capital.provides a level of confidence measure of the probability of the maximum loss that can occur during a period of time.none of the options.