Question

Which of the following statement are correct about the calculation of Risk Weighted Assets (RWA)?

i. It is bank's assets or off-balance-sheet exposures, weighted according to risk

ii. RWA computation is required for assessment of Capital Adequacy Ratio (CAR)

iii. Generally different classes of assets have different risk weights associated with them

A Only i Correct Answer Incorrect Answer
B Only i and ii Correct Answer Incorrect Answer
C Only ii & iii Correct Answer Incorrect Answer
D Only iii Correct Answer Incorrect Answer
E All the above are correct Correct Answer Incorrect Answer

Solution

The correct answer is E

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