17. Which of the following ate considered tier one capital at banks: a. Par value of common stock b. Subordinated debt c. Surplus or retained earnings d. Loan loss reserves e. Aand C 18. What constitutes legal reserves? a. Long term bond holdings b. Vault cash c. Deposits held at the central bank d. B\&C e. None of the above. 19. A liguid asset must have the following characteristics. a. A ready market b. Aeasonably stable arice c. A\&B. d. Market value abowe Book value 4. None of the abore 20. A foreign currency contract that gives the holder of the contract the right to purchase a currency at a fixed price any time before the published explration date is called a : a. Call currency option b. Put currency option c. Long hedge currency futures contract d. Short hedge currency futures contract e. Nane of the above 21. Miami National Bank holds 15 million \$ of government bonds having a duration of 12 years. If interest rates rise by 1% from 5 to 6%, what percentage change will occur in the bonds market. value? a. 12% up b. 12% down c. 11% up 11% down