Question 1)

In general, share buy-back is supposed to be one of the tools that overcapitalized banks use to decrease their capital.

(Hint: Over capitalized banks are banks whose capital exceeds their target capital)

Select one:

True

False

Question 2)

Stress testing is a simulation analysis usually required or conducted by regulators to determine the ability of the banks to deal with any economic or banking crisis.

Select one:

True

False