Question: Multiple choice question about Tier-1 capital What is correct about Tier-1 capital? I.Refers to the best performing tier of bank assets. II.Consists mainly of shareholders

Multiple choice question about Tier-1 capital

What is correct about 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.

A. Only II is correct B. Only III is correct C. Only I is correct D. I and II are correct E. II and III are correct.

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