6. Which of the following describes a situation when an institution insulated from risk behaves differently than it would behave if it were fully exposed to the risk?
Moral hazard
Adverse hazard
Moral selection
Adverse selection
7. Which of the following statements are true in relation to Basel III? A. It is relevant to "systemically important" institutions only, due to their role in the financial crisis. B. It included new ratios related to liquidity and leverage requirements
A, B, & C only
B & D only
A & B only
as the Basel II requirements were deemed to be sufficient. D. It sets out disclosure requirements for banks.
B, C, & D only
8. Which of the following types of regulation best describes a rule that mandates that the cost of embedded commissions within a product must be made known to clients?
