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3I0-012 · Question #58

Which one of the following statements correctly describes the increased capital ratios that will come into effect under Basel III?

The correct answer is D. minimum tier 1 capital of 6% and minimum total capital including conservation buffer of 10.5%. See the full explanation below for the reasoning.

Question

Which one of the following statements correctly describes the increased capital ratios that will come into effect under Basel III?

Options

  • Aminimum tier 1 capital of 4.5% and minimum total capital plus a conservation buffer of 10.5%
  • Bminimum tier 1 capital of 6% and minimum total capital including conservation buffer of 8%
  • Cminimum tier 1 capital of 4% and minimum total capital including conservation buffer of 10.5%
  • Dminimum tier 1 capital of 6% and minimum total capital including conservation buffer of 10.5%

How the community answered

(23 responses)
  • A
    9% (2)
  • B
    13% (3)
  • C
    4% (1)
  • D
    74% (17)

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