Question

Tier II (supplementary) capital includes which of the following?
I. Allowance for loan and lease losses, up to 1.25% of risk-weighted assets
II. Subordinated debt not maturing within 5 years (max amount = 50% of Tier 1 capital)
III. Common stock and retained earnings
IV. Nontransaction deposits
A. II and III only
B. I and IV only
C. I and II only
D. I, II, and III only
E. I, III, and IV only

Answer

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