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ACI

3I0-012 · Question #255

Which one of the following statements is incorrect under Basel III?

The correct answer is C. There is a distinction between upper Tier 2 and lower Tier 2 capital. See the full explanation below for the reasoning.

Question

Which one of the following statements is incorrect under Basel III?

Options

  • AInstruments qualifying for recognition as Tier 1 or Tier 2 capital will be substantially restricted.
  • BBasel III does not include Tier 3 capital
  • CThere is a distinction between upper Tier 2 and lower Tier 2 capital
  • DNew non-common equity Tier 1 and Tier 2 instruments are more loss-absorbing than previously

How the community answered

(22 responses)
  • A
    5% (1)
  • B
    5% (1)
  • C
    82% (18)
  • D
    9% (2)

Community Discussion

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Full 3I0-012 Practice