CFA Practice Question

There are 334 practice questions for this study session.

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:

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.

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