Using the Basel III framework, which of the following is the best estimate of the banks current leverage ratio?
A. 1.29%
B. 5.84%
C. 7.38%
D. 8.67%
Answer:C
Using the Basel III framework, which of the following is the best estimate of the banks current leverage ratio?
A. 1.29% B. 5.84% C. 7.38% D. 8.67%
Explanation: For Basel III purposes, the leverage ratio = (Tier 1 Capital)/(Total Exposure) = 316/4,280=