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A bank that seeks to increase its risk-adjusted capital ratio has a number of options at its disposal including: I. Issue new equity, such as
A bank that seeks to increase its risk-adjusted capital ratio has a number of options at its disposal including: I. Issue new equity, such as through a rights issue to existing shareholders, an equity offering on the open market, or by placing a bloc of shares with an outside investor. II. Increase retained earnings by reducing the share of its profit it pays out in dividends. III. Reduce its risk-weighted assets by replacing riskier loans with safer ones or with government securities. Only III is correct. I and II are correct. Only II is correct. I, II and III are correct. Only I is correct
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