Which of the Following Is True

question 21

Multiple Choice

Which of the following is true?

• A)Total capital is the sum of Tier I and Tier II capital less deductions.
• B)Total capital must equal or exceed 8% of risk-weighted assets.
• C)The total of Tier II capital is limited to 100% of Tier I capital.
• D)All of the listed options are correct.

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Definitions:

Dividends Paid

The portion of a company's earnings that is distributed to shareholders as a payment.

Strategic Planning

A process by which organizations define their strategy or direction and make decisions on allocating their resources to pursue this strategy.

Operational Planning

The process of planning short-term actions and resources towards achieving medium-term objectives and strategies.

Budgeting

The process of creating a plan to spend your money, outlining projected income and expenses over a period.