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    Financial Institutions Management
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    Exam 21: Capital Adequacy
  5. Question
    A Deficiency of the Risk-Based Capital Ratio Is That It
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A Deficiency of the Risk-Based Capital Ratio Is That It

Question 35

Question 35

True/False

A deficiency of the risk-based capital ratio is that it measures the ability of a bank to meet both the on- and off-balance-sheet credit risk, but not interest rate risk and market risks.

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