Under the current capital requirements, assets in Category 3, such as 1-4 family real estate loans, have an effective total capital-to-total-assets ratio of:
A) 1.6%.
B) 2.0%.
C) 4.0%.
D) 8.0%.
E) 8.6%.

Question

Quizplus · Accepted Answer

According to the current capital requirements, assets in Category 3 have a risk-weighting of 50%. Therefore, the effective total capital-to-total-assets ratio for Category 3 assets is 8% x 50% = 4%.

Under the Current Capital Requirements, Assets in Category 3, Such