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Subordinated debt and certain reserves make up a bank's supplementary capital, also called:
AWorking capital
BTier II capital
CTier I capital
DCore capital
Answer & Solution
Correct answer: B. Tier II capital
1. Supplementary capital absorbs losses less readily than core capital.
2. It includes subordinated debt.
3. That is Tier II.
_Source: Reserve Bank of India, Glossary (rbi.org.in)._
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