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8. Of all the different types of capital financial institutions use today, which of the following represents the highest relative percentage: Surplus. Common stock. Undivided

8. Of all the different types of capital financial institutions use today, which of the following represents the highest relative percentage:

  1. Surplus.
  2. Common stock.
  3. Undivided profits.
  4. Equity reserves.

9. The credit risk weight used to calculate risk-weighted assets for short-term unused commitments to individuals, an off-balance sheet item is:

  1. 0 percent.
  2. 20 percent.
  3. 50 percent.
  4. 100 percent.

10. For financial institutions, under Basel III in order for the institution to be considered adequately capitalized, Tier 1 ratio must be:

  1. No more than 6 percent.
  2. No more than 4 percent.
  3. At least 6 percent.
  4. Minimum of 8 percent.

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