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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Definitions:

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A Founding Father of the United States known for being an influential interpreter and promoter of the U.S. Constitution, as well as the founder of the nation's financial system.

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