CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Suppose a bank has $5 million in tier-1 capital and $3 million in tier-two capital. It has loans that have been weighted and calculated as $40 million.The capital adequacy ratio of the bank ABC is ______.
A. 10%
B. 15%
C. 20%
Explanation: capital adequacy ratio = ($5 million + 3 million) / $40 million = 20%

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