Question
QUESTION 22 At the beginning of first quarter 2020, the bank buys an available-for-sale security for $150. At the end of the first quarter the
QUESTION 22
At the beginning of first quarter 2020, the bank buys anavailable-for-sale security for $150. At the end of the first quarter the price is $170. The bank sells the security at $180 at the end of the second quarter 2020.
During the second quarter 2020 (i.e. between the beginning and the end of the second quarter) the bank shareholders' equity ______________, the retained profit ___________________ and the capital reserve _____________________..
| A. | increased by $10; increased by $30; increased by $20 | |
| B. | increased by $10; increased by $30; decreased by $20 | |
| C. | decreased by $10; decreased by $30; increased by $20 | |
| D. | did not change; increased by $30; decreased by $30 | |
| E. | increased by $30; increased by $10; increased by $20 |
QUESTION 23
Which of the following statements is NOT correct?
| A. | The countercyclical buffer can be different in different countries. | |
| B. | Regulatory capital that is used for minimum requirements can be used for the conservation and the countercyclical buffers. | |
| C. | A bank cannot meet the countercyclical buffer if the conservation buffer has not been met. | |
| D. | The conservation buffer is always 2.5% of RWA, regardless of the state of the economy and the country. | |
| E. | The punishment for breaching the buffers is not as severe as the punishment for breaching the minimum capital requirements. |
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Introduction To Health Care Management
Authors: Sharon B. Buchbinder, Nancy H. Shanks
3rd Edition
128408101X, 9781284081015
