Which of the Following Statements Regarding Capital Adequacy Requirements Is

question 26

Multiple Choice

Which of the following statements regarding capital adequacy requirements is incorrect?

• A) Existing credit-risk guidelines are extended to include market risk arising from a bank's trading activities.
• B) Regulators focus on credit risk, market risks, operational risk and type of capital held.
• C) Eligible Tier 1 capital must constitute at least 70% of a bank's capital base.
• D) Tier 2 capital is divided into upper and lower Tier 2 parts.

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Definitions:

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Remorse

A deep feeling of regret or guilt for a wrong committed, often accompanied by a desire to make amends or change one's behavior.

Manipulative

Employing unscrupulous, deceptive, or insidious means to influence or control others to one's own advantage.

Antisocial Personality

A personality disorder characterized by a long-term pattern of disregard for, or violation of, the rights of others, leading to significant social and interpersonal problems.