Question

Is the firm adequately capitalized if it has total capital and surplus of $10 million?

A. No, its total risk-based capital charge is higher than $10 million.

B. No, its total risk-based capital charge is lower than $10 million.

C. Yes, its total risk-based capital charge is higher than $10 million.

D. Yes, its total risk-based capital charge is lower than $10 million.

E. No, its total risk-based capital charge is greater than 0.

Answer

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