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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. 1.Abankprovidesaloanof$1milliontoacompanythathasanArating.Calculatethedollarvalueofcapitalrequiredunderthecapitaladequacyrequirementstosupportthefacility. A.$16000 B.$40000
  2. C.$80000
  3. D.$120000
  4. 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
  5. 3.Alargecommercialbankoperatingintheinternationalmarketswillgenerallyapplytothebanks'supervisortousethe_____tocreditrisk. A.advancedinternalratings-basedapproach B.foundationexternalratings-basedapproach
  6. C.standardisedapproach
  7. D.standardisedapproachwithexternalratings

please give me the answer and explain. Thank you!

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