Q27 Which of the following are reasons why regulators have imposed a leverage capital requirement on banks in addition to a risk-based capital requirement? 1. The risk weights could be inaccurate (e.g., too low for some categories). 2. Banks could game the requirements by shifting to riskier, higher-yielding assets within risk categories. 3. The risk-based requirements only take into account credit risk and not other forms of risk such as interest rate risk.

Group of answer choices

2 and 3

1, 2, and 3

1 and 2

1 and 3