QUES: European regulators introduced Basel III regulations for banks. It increased capital ratios, limits on leverage, narrow definition of capital (to exclude subordinated debt), limit counter-party risk, and new liquidity requirements. Critics argue that Basel III doesn’t address the problem of faulty risk-weightings. Major banks suffered losses from AAA-rated created by financial engineering (which creates apparently risk-free assets out of high risk collateral) that required less capital according to Basel II. Lending to AA-rated sovereigns has a risk-weight of zero, thus increasing lending to governments and leading to the next crisis. Johan Norberg argues that regulations (Basel III among others) have indeed led to excessive lending to risky governments (see European sovereign-debt crisis) and the ECB pursues even more lending as the solution.

What term describes creating risk-free assets out of high risk collateral?
What is the answer?
ANS: financial engineering
QUES: Formed in 1878, Everton were founding members of The Football League in 1888 and won their first league championship two seasons later. Following four league titles and two FA Cup wins, Everton experienced a lull in the immediate post World War Two period until a revival in the 1960s which saw the club win two league championships and an FA Cup. The mid-1980s represented their most recent period of sustained success, with two League Championship successes, an FA Cup, and the 1985 European Cup Winners' Cup. The club's most recent major trophy was the 1995 FA Cup. The club's supporters are known as Evertonians.

Who won the FA cup in 1985?
What is the answer?
ANS: unanswerable
QUES: The figure of the "tragic octoroon" was a stock character of abolitionist literature: a mixed-race woman raised as if a white woman in her white father's household, until his bankruptcy or death has her reduced to a menial position She may even be unaware of her status before being reduced to victimization. The first character of this type was the heroine of Lydia Maria Child's "The Quadroons" (1842), a short story. This character allowed abolitionists to draw attention to the sexual exploitation in slavery and, unlike portrayals of the suffering of the field hands, did not allow slaveholders to retort that the sufferings of Northern mill hands were no easier. The Northern mill owner would not sell his own children into slavery.

What stock character lived with her white father until he left the picture?
What is the answer?
ANS:
"tragic octoroon"