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1. The Basel I standards uses two definitions of capital, Tier I and Tier II. Book value of assets 0.04 = minimum Tier I capital
1. The Basel I standards uses two definitions of capital, Tier I and Tier II.
Book value of assets 0.04 = minimum Tier I capital
Risk weighted assets 0.04 = minimum total capital (Tier I Tier II)
Banks should meet:
A. Either of the two conditions.
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B. Both the conditions.
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C. Meet the second condition if first condition is not met.
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D. Meet the first condition if the second condition is not met.
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2. Which one of the following is insured (with some limits) by FDIC?
A. Deposits at commercial banks
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B. Money market mutual funds
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