Use the following information for questions

-The minimum leverage capital for this bank is:
A)$348
B)$450
C)$509
D)$581
E)$696

Question

Use the following information for questions 
 
-The minimum leverage capital for this bank is:
A)$348 
B)$450 
C)$509 
D)$581 
E)$696

Quizplus · Accepted Answer

The minimum leverage capital can be calculated by taking the average of the total exposure of the bank during a quarter and dividing it by the leverage ratio requirement. From the given information, we can identify the TB number as the total exposure of the bank. Therefore, we need to find the leverage ratio requirement. Here, we do not have the leverage ratio requirement mentioned. 
However, as per the Basel III leverage ratio framework, the leverage ratio requirement is 3%. 
So, the minimum leverage capital would be TB number/3%, which is equal to 450. 
Therefore, the best choice is B.

Use the Following Information for Questions