Question 2 3 pts The countercyclical capital buffer refers to: 1. A macroprudential policy tool...

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Question 2 3 pts The countercyclical capital buffer refers to: 1. A macroprudential policy tool requiring banks to hold more capital during economic recessions when they are more likely to incur loan losses. II. A macroprudential policy tool requiring banks to hold more capital during economic expansions when their assets grow rapidly. III. A macroprudential policy tool designed to counter the pro-cyclical effects of higher minimum capital requirements on banks introduced in Basel III. Il only Both I and III o I only Both II and III O III only

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