Financial Risk Manager Part 2
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Ultimate access to all questions.
Which statement is true regarding Common Equity Tier 1 capital?
A
Common Equity Tier 1 capital to risk-weighted assets must be 6% beginning January 1, 2015.
B
Preferred stock will make up the bulk of Common Equity Tier 1 capital because shareholders cannot force the bank into bankruptcy.
C
Common Equity Tier 1 capital has the least-stringent requirements for what constitutes capital.
D
To qualify as common shares that may be used for Common Equity Tier 1 capital, investors of the shares must have a residual claim to the assets.