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1.Abankprovidesaloanof$1milliontoacompanythathasanArating.Calculatethedollarvalueofcapitalrequiredunderthecapitaladequacyrequirementstosupportthefacility. A.$16000 B.$40000 C.$80000 D.$120000 2.A bank provides documentary letters of credit for a company that has a credit rating of A+. The face value
- 1.Abankprovidesaloanof$1milliontoacompanythathasanArating.Calculatethedollarvalueofcapitalrequiredunderthecapitaladequacyrequirementstosupportthefacility. A.$16000 B.$40000
- C.$80000
- D.$120000
- 2.A bank provides documentary letters of credit for a company that has a credit rating of A+. The face value of contracts outstanding is $2 million. Calculate the dollar value of capital required under the capital adequacy requirements to support these facilities, given that the bank supervisor's credit conversion factor is 20%. A. $6 400 B. $16 000 C. $160 000 D. $240 000
- 3.Alargecommercialbankoperatingintheinternationalmarketswillgenerallyapplytothebanks'supervisortousethe_____tocreditrisk. A.advancedinternalratings-basedapproach B.foundationexternalratings-basedapproach
- C.standardisedapproach
- D.standardisedapproachwithexternalratings
please give me the answer and explain. Thank you!
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