'Basel III Accord' or simply 'Basel III' often seen in the news, seeks to

1. A

   develop national strategies for the conservation and sustainable use of biological diversity

   National strategies for biological diversity are the domain of the Convention on Biological Diversity, not Basel III. This option is not the key.

2. B

   improve banking sector's ability to absorb economic stress and improve risk management

   Basel III is a global regulatory framework of the Basel Committee on Banking Supervision. It raises capital and liquidity standards so banks can absorb shocks and manage risk better. This option is the official key.

3. C

   reduce the greenhouse gas emissions but places a heavier burden on developed countries

   Differentiated greenhouse-gas burdens describe climate agreements such as the Kyoto Protocol, not banking accords. This option is therefore wrong.

4. D

   transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals

   Replacing CFCs is the Montreal Protocol agenda, not Basel III. This option is not the key.

Summary. Official key is (b) improve banking sector’s ability to absorb economic stress and improve risk management. Basel III followed the 2008 crisis with higher capital, leverage and liquidity rules. CBD, Kyoto-style climate burden-sharing and the Montreal Protocol are unrelated regimes. Only (b) names the banking purpose.