QUESTION 13

The risk weights in the calculation of RWA

	A.	are entirely the decision of the bank in the standardized approach in Basel II and III.
	B.	are dependent on credit rating agencies' opinion in the standardized approach in Basel II and III.
	C.	has evolved with each iteration of Basel.
	D.	are all the same in Basel I.
	E.	are more risk sensitive in Basel I than in Basel II and III.

QUESTION 14

A bank has CET1 equal to 8% of its RWA and no Additional Tier 1 capital and no Tier 2 capital.

Basel III is implemented with a conservation buffer. The regulator of the country in which the bank operates imposes a countercyclical buffer of 2%.

Based on the information above, which of the following statements is CORRECT?

	A.	The bank has met its minimum requirements and conservation buffer but not the countercyclical buffer.
	B.	The bank has met all the requirements.
	C.	The bank has met its minimum requirements but not the conservation buffer and not the countercyclical buffer.
	D.	The bank has not met any of the requirements.
	E.	There is not enough information to conclude.