Tier 1 Common Equity is important in the Basel Accord capital adequacy ratio determinations for ALL BUT ONE of the following reasons:

Select one:

a.These instruments have no legal requirement to be paid dividends.

b.These instruments have no redemption date.

c.These instruments represent a source of cash from which the bank can pay higher interest rates to their depositors.

d.These instruments shows the permanent commitment by the bank's shareholders.

e.These instruments rank behind depositors and other creditors in the case of the bank's liquidation.