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please help with true or false questions 5-10 thank you!! positive. 5. If a rise in interest rates decreases the market value of assets from

please help with true or false questions 5-10 thank you!! image text in transcribed
positive. 5. If a rise in interest rates decreases the market value of assets from $600 million to $580 million and the market value of liabilities from $560 million to $550 million, the market value of the equity will increase from $40 million to $50 million 6. The higher the volatility in interest rates, the wider the gap between the book value of equity and the market value of equity 7. Market value accounting may decrease the variability of earnings of a financial institution 8. The book value of bank equity is the present value of assets minus liabilities. 9. The leverage ratio measures the amount of a financial institution's core capital relative to total consolidated assets. 10. Tier I capital measures the market value of common equity plus the amount of perpetual preferred 11. Under Basel II, regulatory minimum capital requirements for credit, market, and operational risks 12. Under Basel II, banks are not allowed to use their internal estimates of their risk exposures. 13. The primary role of capital for a financial institution is to assure the highest possible return on 14. In addition to establishing minimum capital requirements, Basel II proposed procedures to ensure stock plus minority equiry interest held by the bank in subsidiaries minus goodvill are covered in the regulation. equity for the shareholders. that sound internal process are used to assess capital adequacy and to set targets that are commensurate with the risk profile and environment

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