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.

---

Definitions:

Lowball Technique

A persuasion and negotiation strategy where an initially favorable offer is made, only to be changed to less favorable terms after initial agreement.

Hidden Costs

Expenses that are not immediately apparent at the time of purchase but become evident later in the use or maintenance of an item.

Feigned Scarcity Technique

A marketing strategy where a company or seller creates an artificial sense of scarcity for a product or service to increase demand.

Reciprocity Norm

A social norm that involves an expectation that people will respond to each other in kind, returning benefits for benefits.