Question #7
Reading: Reading 11 Analysis of Financial Institutions
PDF File: Reading 11 Analysis of Financial Institutions.pdf
Page: 3
Status: Correct
Correct Answer: B
Question
Which of the following factors is least likely to be considered during a CAMELS analysis of a financial institution?
Answer Choices:
A. Levels of government support
B. Accuracy of accounting estimates
C. Estimation methods used for the fair value of assets
Explanation
The level of government support or ownership is not part of the CAMELS process. The
accuracy of accounting estimates and the valuation process used (level 1,2,3) would be
considered within the earnings category.