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question: A bank that seeks to increase its risk-adjusted capital ratio has a number of options at its disposal including: I. Issue new equity, such

question: A bank that seeks to increase its risk-adjusted capital ratio has a number of options at its disposal including:

I. Issue new equity, such as through a rights issue to existing shareholders, an equity offering on the open market, or by placing a bloc of shares with an outside investor.

II. Increase retained earnings by reducing the share of its profit it pays out in dividends.

III. Reduce its risk-weighted assets by replacing riskier loans with safer ones or with government securities.

which options is correct:

a) I, II and III are correct.

b)Only I is correct.

c)I and II are correct.

d)Only III is correct.

e)Only II is correct.

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