Question

What is the risk weight assigned to CRE-RH loans?

A 35% Correct Answer Incorrect Answer
B 50% Correct Answer Incorrect Answer
C 75% Correct Answer Incorrect Answer
D 100% Correct Answer Incorrect Answer
E Not specified Correct Answer Incorrect Answer

Solution

CRE-RH (Commercial Real Estate - Residential Housing) loans have a risk weight of 75%. This risk weight is assigned to determine the capital requirement for banks when lending in this category, reflecting the perceived risk associated with such loans.

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