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    • Question

      A bank has a funded loan exposure of ₹80 crore

      carrying 100% risk weight. It has also issued a bank guarantee of ₹40 crore with credit conversion factor of 50% and risk weight of 100%. What is the total Risk Weighted Asset?
      A ₹80 crore Correct Answer Incorrect Answer
      B ₹100 crore Correct Answer Incorrect Answer
      C ₹120 crore Correct Answer Incorrect Answer
      D ₹140 crore Correct Answer Incorrect Answer
      E ₹160 crore Correct Answer Incorrect Answer

      Solution

      RWA = 80 + (40 × 50%) = 100.

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