Regulatory-defined capital and required leverage ratios are based in whole or in part on

Question

Quizplus · Accepted Answer

Regulatory-defined capital and required leverage ratios are typically based on book value accounting concepts, which allow for more conservative measures of capital and may exclude certain assets that could be subject to market volatility. The net worth concept may also be a factor, but it is generally based on book value as well. Market value accounting concepts may be used in certain circumstances, but this is less common. Ultimately, the economic meaning of capital is an important consideration, but it may be interpreted differently depending on the context and regulatory framework.

Regulatory-Defined Capital and Required Leverage Ratios Are Based in Whole