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1. National Bank has the following balance sheet (in millions) with the risk weights in parentheses and has no off-balance-sheet activities. $20 40 Assets Cash

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1. National Bank has the following balance sheet (in millions) with the risk weights in parentheses and has no off-balance-sheet activities. $20 40 Assets Cash (0%) Treasury bills (0%) Residential mortgages [category 1; loan-to-value ratio = 70%] (50%) Business loans (100%) Total assets Liabilities and Equity Deposits $980 Subordinated debentures (Tier II) 25 Common stock (CET) 45 Retained earnings (CET) 40 Total liabilities and equity $1.090 600 430 $1.090 a. What is the CET1 risk-based ratio? b. What is the Tier I risk-based capital ratio? c. What is the total risk-based capital ratio? d. What is the leverage ratio? e. In what capital risk category would the bank be placed

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