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.