5. Consider a bank with the following balance sheet. Bank Reserves and Treasury Bills have a zero weight. Municipal Bonds and Residential Bons have a 50% weight. Commercial Loans have a 100% weight. Under the original Basel Accord, calculate the banks risk- weighted assets. Is the bank under or over capitalized? Explain. Assets Liabilities Required Reserves $120 million Checkable Deposits $450 million Excess Reserves $ 15 million Bank Capital $110 million Municipal Bonds $100 million Residential Mortgages $150 million Commercial Loans $175 million 6. Government intervention through the enactment of federal laws are meant to stabilize the financial system and ensure depositor's safety. The laws passed by Congress from 1927 to 1999 include 7 of the more important. In each case explain what how each of these laws impacted the ability of bankers to deal with the inherent trades-off between safety, liquidity, solvency and profitability. i The McFadden Act of 1927 ii. The Banking Acts of 1933 (Glass-Steagall) and 1935 iii. The Depository Institutions Deregulation & Monetary Control Act (DIDMCA) of 1980 iv. Depository Institutions Act of 1982 Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 vi. Gramm-Leach-Bliley Financial Services Modernization Act of 1999 V