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Economic capital is used to protect the bank from losses: A. That occur when an unusual and extremely unlikely event occurs. B. That are above

Economic capital is used to protect the bank from losses:

A. That occur when an unusual and extremely unlikely event occurs.

B. That are above the average level but below the relevant confidence interval.

C. That occur due to on-average changes in the economic environment.

D. That occur on average due to the characteristics of the loan portfolio.

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