Capital adequacy in systematic manner

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Reference no: EM132006733

1. Basel II attempts to encourage market discipline by having banks disclose capital structure, risk exposures, and capital adequacy in a systematic manner.

True

False

2. Market value accounting often is criticized because the error in market valuation of nontraded assets likely will be greater than the error using the original book valuation.

True

False

Reference no: EM132006733

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