ACI

3I0-012 · Question #455

For a bank to count funds as regulatory capital:

The correct answer is B. The risk taken by the bank must be taken or shared by provider of the capital. See the full explanation below for the reasoning.

Question

For a bank to count funds as regulatory capital:

Options

AThere has to be an ultra long term maturity date
BThe risk taken by the bank must be taken or shared by provider of the capital
CThe funds must be in the form of pure equity
DThe funds must be re-invested only in cash

How the community answered

(41 responses)

A
12% (5)
B
80% (33)
C
2% (1)
D
5% (2)

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