The Primary Difference Between Basel I and the Proposed Basel

The primary difference between Basel I and the proposed Basel III in converting OBS values to on-balance-sheet credit equivalent amounts is

A) the use of credit ratings in Basel III to assign credit risk weights on the OBS activities.
B) the use of six weight classes by Basel III rather than four classes.
C) the use of the underlying counterparty activity in Basel II to assign credit risk weights on the OBS activities.
D) All of the above.
E) Answers A and C only.

Correct Answer:

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