Which of the Following Is Not Included in the Common

question 66

Multiple Choice

Which of the following is not included in the Common Equity Tier I capital under Basel III?

• A)Retained earnings.
• B)Par value of common shares issued by the bank.
• C)Par value of noncumulative perpetual preferred stock.
• D)Paid-in excess (surplus) of common stock.
• E)Common shares issued by consolidated subsidiaries of the bank.

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Definitions:

Corporation

A legal entity that is separate from its owners, providing limited liability protection to its shareholders and having the ability to raise capital by selling shares.

Held

Usually refers to assets or investments retained over a period, not sold or traded.

Capital Surplus

The amount by which a company's total capital exceeds the par value of its issued share capital.

Paid-in Capital

Funds raised by a company through the sale of common or preferred stock.