Question: Which of the following scenarios would result in a decrease in a bank's capital ratio? Check all that apply. A bank purchased $3 million worth

Which of the following scenarios would result in a decrease 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 $3 million today. A bank announces that it has decreased its dividends from $5.00 per share to $4.00 per share. A bank begins backing several different types of loans and investments that it had not backed in the past, such as mortgage-backed securities, car loans, and real estate development loans. Basel I According to the Basel I framework, which of the following assets would be given the lowest risk weighting? Automobile loans Cash Mortgage-backed securitles Commercial mortgage Joans Which of the following was done under Basel II guidelines? 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. Revisions were made recommending that banks maintain a capital conservation buffer of at least 2.5 percent of their risk-w assets. Banks' capital ratio requirements began to factor in operational risk. Basel III Which of the following was done under Basel III guidelines? Revisions were made recommending that banks should increase their liquidity to meet short-term demands for cash. Banks capital ratio requirements began to factor into operational risk. Revisions were made to what assets banks could invest in. Revisions were made to the way banks could acquire risky assets

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