1.Suppose that Oldhat Financial starts its first day of operations with $9 million in capital. A total of $130 million in checkable deposits is received. The bank makes a $25 million commercial loan and another $50 million in mortgages with the following terms: 200 standard, 30-year, fixed-rate mortgages with a nominal annual rate of 5.25%, each for $250,000. Assume that required reserves are 8%.

A.[5 points] What does the bank balance sheet look like?

B.[1 point] How well capitalized is the bank?

C.[4 points] Calculate the risk-weighted assets and risk-weighted capital ratio after Oldhat's first day.