Question

The Basel Accord

a. forces banks with greater risk to maintain more deposits.
b. forces banks with greater risk to maintain more capital.
c. forces banks with greater risk to maintain less capital.
d. none of the above

Answer 1

Answer: forces banks with greater risk to maintain more capital.

Step-by-step explanation:

The Basel Accord are a set of regulations in the banking industry that enables the proper functioning of banks, if these regulations for banks are strictly adhered to, banks would rarely have problems of total failure which leads to the bank closing up.

The Basel Accord is named after the city of Basel in Switzerland where the meetings took place, the Accord majored on the minimum financial requirements of banks.