Which of the following scenarios would result in an increase in a bank's capital ratio? Check all that apply. A bank purchased $3 million worth of stocks one year ago and sells them for $4 million today but doesn't distribute the earnings as dividends to its shareholders. A bank purchased $3 million worth of stocks one year ago and sells them for $4 million today, distributing all of the earnings to its shareholders. A bank that has been performing strongly engages in a secondary stock offering in an attempt to raise $3 million. A bank announces that it has decreased its dividends from $3.50 per share to $2.50 per share. Basel I According to the Basel I framework, which of the following assets would be given the lowest risk weighting? Mortgage-backed securities Automobile loans Commercial mortgage loans Cash Which of the following was done under Basel II guidelines? Revisions were made to the way credit risk was measured. Revisions were made recommending that banks maintain a capital conservation buffer of at least 2.5 percent of their risk-weighted assets. Revisions were made to the type of analysis banks should do based on the potential of negative economic scenarios. Revisions were made to what assets banks could invest in. Basel III Which of the following was done under Basel III guidelines? Revisions were made to the way banks could acquire risky assets. Banks' capital ratio requirements began to factor into operational risk. Revisions were made to what assets banks could invest in. Revisions were made recommending that banks maintain retained earnings and common stock of at least 6 percent of their total riskweighted assets