Which of the following are problems in using the leverage ratio as a measure of capital adequacy?
A) Even with a low leverage ratio, an FI could have a negative market value net worth.
B) The different types of risks, such as credit or interest rate risk are not captured.
C) Off-balance-sheet activities are not captured.
D) Even with a low leverage ratio, an FI could have a negative market value net worth, the different types of risks, such as credit or interest rate risk are not captured and off-balance-sheet activities are not captured.
Correct Answer:
Verified
Q6: Assume you are presented with the
Q7: Which of the following statements is true?
A)Potential
Q8: Which of the following is the correct
Q9: Which of the following statements is true
Q10: Which of the following statements is true?
A)Credit-risk
Q12: Which of the following statements is true?
A)The
Q13: Which of the following statements is true?
A)The
Q14: Which of the following statements is true?
A)The
Q15: Which of the following statements is true?
A)The
Q16: The net worth is a measure of
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