Economic Capital Is

Multiple Choice

Economic capital is:

A) the asset and liability values of an FI reported according to their historical costs
B) the amount of capital that the DI's shareholders are prepared to contribute so that the business remains as a going concern
C) a measure of an FI's capital that is equal to the difference between the market value of its assets and the market value of its liabilities
D) allows balance sheet values to reflect current rather than historical prices