3. (Capital Adequacy under Basel I) National Bank has the following balance sheet (amount in millions). Assets Liabilities and Equity Cash $40 Deposits $450 Treasury bills 50 Cumulative preferred stock 90 Residential mortgages* 400 Common stock 140 Corporate bonds 300 Retained earnings 110 Total assets *uninsured mortgage. $790 Total liabilities and equity $790 The bank also has off-balance sheet items including $40 million of Amazon performance bonds, $30 million bankers' acceptance from an OECD bank and $20 million forward purchase of crude oil from OECD public sector entity. Under Basel I Accord: (a) What is the risk-weighted on-balance-sheet asset? What is the risk-weighted off-balance-sheet asset? (b) What is the minimum level of total regulatory capital and Tier 1 capital required, respectively? (c) What are the amounts of Tier 1 and Tier 2 capitals available from National Bank, respectively? Does the bank have adequate total regulatory capital and Tier 1 capital?