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2. First National Bank reports the following items on its balance sheet: cash, $200 million; U.S. government securities, $150 million; residential real estate loans, $300
2. First National Bank reports the following items on its balance sheet: cash, $200 million; U.S. government securities, $150 million; residential real estate loans, $300 million; and corporate loans, $350 million. Its off-balance sheet items include standby credit letters, $20 million, and long-term credit commitments to corporations, $160 million. What are First Nationals total risk-weighted assets? If the bank reports Tier 1 capital of $30 million and Tier 2 capital of $20 million, does it have a capital deficiency??
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