1. Consider a failing bank. A deposit of $150,000 is worth how much if the FDIC uses the payoff method? The purchase and assumption method? Which is more costly to tax payers?

2.

Consider a bank with the following balance sheet:

Assets		Liabilities
Required Reserves	$ 8 million	Checkable Deposits	$100 million
Excess Reserves	$ 3 million	Bank Capital	$ 6 million
T-bills	$45 million
Mortgages	$40 million
Commercial Loans	$10 million

Calculate the banks risk-weighted assets.