Multiple choice

Subordinated debt can be included in Tier-2 capital fund, only where it is with an original maturity of

  1. max 10 years

  2. min 10 years

  3. max 5 years

  4. min 5 years
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

TSD instruments with an initial maturity of less than 5 years or with a remaining maturity of one year or less should not be included as part of Tier-II capital.

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