Economic capital is:
A) the asset and liability values of an FI reported according to their historical costs
B) the amount of capital that the DI's shareholders are prepared to contribute so that the business remains as a going concern
C) a measure of an FI's capital that is equal to the difference between the market value of its assets and the market value of its liabilities
D) allows balance sheet values to reflect current rather than historical prices
Correct Answer:
Verified
Q22: Choose the correct statement:
A)APRA's APS 112 Capital
Q23: Market to book ratio is a ratio
Q24: Current credit exposure is the:
A)credit risk exposure
Q25: Choose the correct capital adequacy ratio(s):
A)Total capital
Q26: Choose the correct statement:
A)Basel II provides a
Q28: Common equity Tier 1 is:
A)made up discretionary
Q29: The risk of loss owing to changes
Q30: Loan loss reserve is:
A)the accumulated value of
Q31: Which of the following are criticisms of
Q32: Which of the following statements is true
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