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Which of the Following Are Criticisms of a Risk-Based Capital

Question 66

Multiple Choice

Which of the following are criticisms of a risk-based capital ratio?


A) The risk-class categories might not adequately reflect riskiness.
B) The 8 per cent risk-based capital requirement has not created a level competitive playing field across banks.
C) Credit risk portfolio diversification opportunities are largely ignored.
D) All of the listed options are correct.

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