14 Onshore Bank has $20 million in assets, with risk-adjusted assets of $10 million. Tier I capital is $700 000, and Tier II capital is $300 000. How will each of the following transactions affect the value of the Tier I and total capital ratios? What will the new values of each ratio be? (a) The bank repurchases $100 000 of ordinary shares. (b) The bank issues $2 million of CDs and uses the proceeds for standard residential mortgages in the 50 per cent risk weighting category. (c) The bank receives $500 000 in deposits and invests them in Australian government bonds. (d) The bank issues $800 000 in ordinary shares and lends it to help finance a new shopping mall. 14 Onshore Bank has $20 million in assets, with risk-adjusted assets of $10 million. Tier I capital is $700 000, and Tier II capital is $300 000. How will each of the following transactions affect the value of the Tier I and total capital ratios? What will the new values of each ratio be? (a) The bank repurchases $100 000 of ordinary shares. (b) The bank issues $2 million of CDs and uses the proceeds for standard residential mortgages in the 50 per cent risk weighting category. (c) The bank receives $500 000 in deposits and invests them in Australian government bonds. (d) The bank issues $800 000 in ordinary shares and lends it to help finance a new shopping mall