Multiple Choice
Which of the following are problems in using the leverage ratio as a measure of capital adequacy?
A) Even with a low leverage ratio, an FI could have a negative market value net worth.
B) The different types of risks, such as credit or interest rate risk are not captured.
C) Off-balance-sheet activities are not captured.
D) Even with a low leverage ratio, an FI could have a negative market value net worth, the different types of risks, such as credit or interest rate risk are not captured and off-balance-sheet activities are not captured.
Correct Answer:
Verified
Correct Answer:
Verified
Q28: Which of the following statements is true
Q29: Basel III introduced significant capital reforms including
Q30: The risk that the value of a
Q31: Identify the main functions of an FI's
Q32: To calculate the operational risk capital charge,
Q34: The capital conservation buffer is _ of
Q35: The net worth is a measure of
Q36: Credit-risk-adjusted assets are on- and off-balance-sheet assets
Q37: Consider an FI with the following off-balance-sheet
Q38: Which of the following statements is true?<br>A)Credit-risk