What was the primary motivation behind the creation of the 1988 base Accord?
What will be an ideal response?
Globalization, in the sense that foreign banks could enter a market and compete with domestic banks. The problem was that often times the foreign banks would be operating under different regulatory restrictions that would provide them with a competitive advantage. The Basel Accord is an attempt to place minimum capital requirements on financial institutions that are internationally active.
You might also like to view...
The determinants of investment include the
a. level of technology, the interest rate, expectations of future economic growth, and the level of income b. level of technology, the interest rate, expectations of future economic growth, and the capacity utilization rate c. level of technology, the interest rate, the capacity utilization rate, and the level of income d. level of technology, the capacity utilization rate, expectations of future economic growth, and the level of income e. capacity utilization rate, expectations of future economic growth, the interest rate, and the level of income
The legally bound obligation to pay debts:
a. note of stockhold b. dividend c. note of Stockholm d. liability e. stock and bondhold
While not as relevant today, the trade theory that was useful in explaining the pattern of trade when the US dominated the global market is the ______ theory.
Fill in the blank(s) with the appropriate word(s).
The cyclically adjusted budget refers to:
A. the inflationary impact that the automatic stabilizers have in a full-employment economy. B. that portion of a full-employment GDP that is not consumed in the year it is produced. C. the size of the federal government's budgetary surplus or deficit when the economy is operating at full employment. D. the number of workers who are underemployed when the level of unemployment is 4 to 5 percent.