12. What do loans and security investments represent for a bank? A) Earning assets B) Classified assets C) Discretionary accounts D) Market valued assets E) None of the above 13. A ratio that can be used to measure a bank's credit risk would be: A) Net loans/total assets B) Interest sensitive assets/interest sensitive liabilities C) Total assetsumber of full time employees D) Nonperforming loans/total loans 14. The TRC Bank has a net profit margin of 7.5%, an asset utilization ratio of 18%, an equity multiplier of 20 times. What is this bank's ROE? A) 27.00 percent B) 1.35 percent C) 7.50 percent D) 1.50 percent E) 3.6 percent 15. Which of the following ratios would be a measure of credit risk? A) Nonperforming Loans/Net Loans B) Net Loans/Total Assets C) Interest Sensitive Assets/Interest Sensitive Liabilities D) Equity Capital/Total Assets E) None of the above