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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.

B. Both the conditions.

C. Meet the second condition if first condition is not met.

D. Meet the first condition if the second condition is not met.

2. Which one of the following is insured (with some limits) by FDIC?

A. Deposits at commercial banks

B. Money market mutual funds

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