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    Question

    Tier I capital is also

    called
    A Gone concern capital Correct Answer Incorrect Answer
    B Additional capital Correct Answer Incorrect Answer
    C Going concern capital Correct Answer Incorrect Answer
    D Common capital Correct Answer Incorrect Answer
    E Supplementary capital Correct Answer Incorrect Answer

    Solution

    Tier 1 capital is considered to be the going concern capital. The going concern capital allows a bank to continue its activities and keeps it solvent. The highest quality of Tier 1 capital is called common equity tier 1 (CET1) capital. Tier 2 capital is considered to be gone concern capital

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