- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 13. Analysis of Financial Institutions
- Subject 2. Analyzing a Bank: The CAMELS approach
CFA Practice Question
Suppose a bank has $50 in cash, $100 in performing loans, and $10 non-performing loans, its risk-weighted assets would most likely be:
B. $120
C. $110
A. $160
B. $120
C. $110
Correct Answer: B
Cash has a risk weighting of zero, and non-performing loans have a weighting more than 100%. Out of the three answers, the most likely one would be $120.
User Contributed Comments 0
You need to log in first to add your comment.