CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

A bank is considered to be very safe if it has a large amount of:

I. risk-weighted assets
II. Tier-1 capital
III. Tier-2 capital
Correct Answer: None of them is correct.

It is the ratio that matters. The minimum capital adequacy ratios are critical is to make sure that banks have enough cushion to absorb a reasonable amount of losses before they become insolvent and consequently lose depositorsí funds.

User Contributed Comments 0

You need to log in first to add your comment.