Question
Which of the following carries lowest risk
weight?Solution
The risk weights are assigned as per the credit, market and operational risk associated with an asset. Investment in Government bonds/securities carries low risk. The risk weight assigned to them as per RBI is 2.5%. While the loans guaranteed by Government of India or State government carries 0% risk. Housing loans carry 50-100% risk weight while retail or personal loans carry 100-125% risk weight.
AIIB stands for ______________
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