8008 Exam Dumps | The capital adequacy ratio applied to risk weighted assets for the calculation of capital requirements

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PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition
PRMIA.8008.v2021-08-28.q125
Question 17

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Question 17/125

The capital adequacy ratio applied to risk weighted assets for the calculation of capital requirements for credit risk per Basel II is:

A. 150%

B. 12.5%

C. 100%

D. 8%

Correct Answer: D

Explanation
The capital adequacy ratio, also called the minimum capital requirement for credit risk per Basel II is 8% of risk weighted assets. The other choices are incorrect.

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