Tier-1 capital:

I. Refers to the best performing tier of bank assets.

II. Consists mainly of shareholders equity and retained earnings.

III. Provides complete safety net so that bank with a Tier-1 capital ratio above 8.5% cannot fail.

which option is correct?

1) Only I is correct.

2) II and III are correct.

3) Only II is correct.

4) I and II are correct.

5) Only III is correct.