Tier 2 capital consists of all of the following except: A) 30-year subordinated debt. B) cumulative perpetual preferred stock. C) mandatory convertible preferred stock. D) preferred stock with a maturity of 7 years. E) equity in subsidiaries.

Question

Quizplus · Accepted Answer

Equity in subsidiaries is not considered part of Tier 2 capital. Tier 2 capital typically includes instruments like subordinated debt, certain types of preferred stock, and other hybrid instruments, but not equity in subsidiaries.

Tier 2 Capital Consists of All of the Following except