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What Are the Principal Objectives of the Risk-Based Capital Requirements

Question 11

Multiple Choice

What are the principal objectives of the risk-based capital requirements?


A) Greater consistency in evaluating the capital adequacy of major banks.
B) Capital adequacy standards that consider the risk profile of the bank.
C) Recognize liquidity factors and market price sensitivity to which a bank may be exposed.
D) a and b only.
E) All of the above.

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