To Be Well-Capitalized, a Bank Must Have a Leverage Ratio

question 8

Multiple Choice

To be well-capitalized, a bank must have a leverage ratio of at least ____________%, Tier I capital to risk-adjusted asset ratio of at least ____________%, and a total risk-based capital ratio of at least ___________%.

• A) 4; 4; 8
• B) 5; 6; 10
• C) 3; 3; 8
• D) 4; 8; 4
• E) 4; 6; 10 See Table 13-2

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Definitions:

Earthworm

A type of invertebrate animal known for its role in aerating soil and breaking down organic material into fertile humus.

Clitellum

A thickened, glandular section of the body found in earthworms and some other annelids, crucial for reproduction.

Fertilization

Fusion of sperm and egg nuclei, producing a zygote that develops into a new individual.

Cephalopods

A class of marine molluscs that includes octopuses, squids, and cuttlefish, known for their intelligence and ability to change color.