NHTM

The most important source of capital for a bank is

• Tier 1 capital

• Common Equity Tier 1 capital

• Total capital

According to Basel III guideline, total Tier 1 capital must be at least

• 4.5% of risk-weighted assets

• 6% of risk-weighted assets

• 8% of risk-weighted assets

Securities issued by a bank that are subordinate to deposits and other debt obligations and without specified maturity or contractual payments are most likely part of

• Tier 1 capital

• Common Equity Tier 1 capital

• Tier 2 capital

Under current accounting standards, equity securities in a bank's portfolio are most likely shown on the balance sheet at

• Fair value

• Fair value under US GAAP and fair value or amortized cost under IFRS

• Fair value under IFRS and fair value or amortized cost under US GAAP

Regarding inputs into valuation of securities, Level 1 inputs are most accurately described as

• Quoted market prices of identical securities

• Quoted market prices of similar securities

• Inputs derived from market prices

2. Which of the following sources of earnings for a bank is most volatile?

• Service income

• Net interest income

• Trading income

For a bank, a maturity mismatch between assets and liabilities is most likely to contribute to the bank's

• Earnings quality risk

• liquidity risk

• capital adequacy risk

What does NSFR measure?

• Liquidity of a bank's funding sources relative to the liquidity needs of its assets

• Stability of a bank's funding sources relative to its assets

• A bank's capital relative to its stable funding sources

What is the minimum NSFR recommended by the Basel III standards?

• 10%

• 50%

• 100%

Based on the following information, which bank has the highest liquidity risk in a stress scenario?

• Beta

• Delta

• Charlie