What Is Basecoin? Basecoin was a cryptocurrency launched in 2018 whose protocol was designed to keep its price stable. At launch, its value was pegged to the U.S. dollar. Basecoin was designed to help investors have a store of value that wasn’t plagued by the wild fluctuations in price that most cryptocurrencies, such as Bitcoin, experience. After
What is Base Currency? In the forex market, currency unit prices are quoted as currency pairs. The base currency – also called the transaction currency – is the first currency appearing in a currency pair quotation, followed by the second part of the quotation, called the quote currency or the counter currency. For accounting purposes
What Are the Basel Accords? The Basel Accords are a series of three sequential banking regulation agreements (Basel I, II, and III) set by the Basel Committee on Bank Supervision (BCBS). The Committee provides recommendations on banking and financial regulations, specifically, concerning capital risk, market risk, and operational risk. The accords ensure that financial institutions
What Is Basel I? Basel I is a set of international banking regulations established by the Basel Committee on Banking Supervision (BCBS). It prescribes minimum capital requirements for financial institutions, with the goal of minimizing credit risk. Under Basel I, banks that operate internationally were required to maintain at least a minimum amount of capital
What Is the Basel Committee on Banking Supervision? The Basel Committee on Banking Supervision (BCBS) is an international committee formed to develop standards for banking regulation. As of 2022, it is made up of Central Banks and other banking regulatory authorities from 28 jurisdictions and has 45 members. Key Takeaways The Basel Committee is made
What Is Basel III? Basel III is an international regulatory accord that introduced a set of reforms designed to mitigate risk within the international banking sector by requiring banks to maintain certain leverage ratios and keep certain levels of reserve capital on hand. Begun in 2009, it is still being implemented as of 2022. Key
What Is Base Rate Fallacy? Base rate fallacy, or base rate neglect, is a cognitive error whereby too little weight is placed on the base, or original rate, of possibility (e.g., the probability of A given B). In behavioral finance, base rate fallacy is the tendency for people to erroneously judge the likelihood of a
What Is a Base Year? A base year is the first of a series of years in an economic or financial index. In this context, it is typically set to an arbitrary level of 100. New, up-to-date base years are periodically introduced to keep data current in a particular index. Base years are also used
What Is Base-Year Analysis? In finance and economics, base-year analysis includes all of the layers of analysis concerning economic trends in relation to a specific base year. For example, a base-year analysis could express economic variables relative to base-year prices to eliminate the effects of inflation. When analyzing a company’s financial statements, it is useful
The Basic Materials Sector: An Overview The basic materials sector is an industry category made up of businesses engaged in the discovery, development, and processing of raw materials. The sector includes companies engaged in mining and metal refining, chemical products, and forestry products. Within this sector are the companies that supply most of the materials used in construction.
