The Capital Conservation Buffer Is _______ of Risk-Weighted Assets, Comprised

question 15

Multiple Choice

The capital conservation buffer is _______ of risk-weighted assets, comprised of _______ only:

• A) 2.5 per cent, common equity Tier 1 only.
• B) 2.5 per cent, Tier 1 only.
• C) 7.5 per cent, common equity Tier 1 only.
• D) 7.5 per cent, Tier 1 only.

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Definitions:

Market Value

The current market valuation at which services or assets are purchasable or sellable.

Book Value

The net value of a company's assets minus its liabilities, often used to assess if a company's stock is under- or overvalued.

Note Payable

An obligation in writing that promises to pay a specified sum of money at a determined future date or on demand.

Capital Balances

The amount of money that owners have invested in a company plus any retained earnings or losses.