Which of the following statements about leverage ratios under Basel III is correct?

Question

Options

• AThe leverage ratio is the ratio of the bank's Tier 1 Capital to total assets of the bank, excluding its off- balance
• BThe purpose of introducing a leverage ratio is to avoid the build-up of excess leverage that could potentially
• CThe leverage ratio under Basel III must be higher than 4%.
• DThe leverage ratio is the ratio of the bank's Tier 1 and Tier 2 Capital to total assets of the bank, including its

• A
  9% (2)
• B
  70% (16)
• C
  4% (1)
• D
  17% (4)

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