Which of the Following Statements Regarding Leverage Ratio Framework Are

question 107

Multiple Choice

Which of the following statements regarding leverage ratio framework are untrue?

• A)The leverage ratio complements the risk-weighted capital requirements by providing a safeguard against unsustainable levels of leverage.
• B)The leverage ratio complements the risk-weighted capital requirements by mitigating gaming and model risk across both internal models and standardized risk measurement approaches.
• C)The leverage ratio G-SIB buffer must be met with Tier 5 capital and is set at 10% of a G-SIB's risk weighted higher-loss absorbency requirements.
• D)The leverage ratio buffer takes the form of a capital buffer akin to the capital buffers in the risk-weighted framework.
• E)all of the above statements are true.

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