6. Consider the following balance sheet information of ABC Bank_ On Balance Sheet Items I Face Value j Category Cash 5140,000 1 US Treasury bills $7,000 1 US Treasury bonds $500,000 1 Federal Reserve shares $9,000 1 Repos secured by federal agencies $160,000 2 Claims on US depository institutions 51,000,000 2 Shorterm (01 year) claim on foreign banks 51,500,000 2 General Obligation municipals $200,000 2 Claims on or guaranteed by federal agencies 530,000 2 Municipal Revenue Bonds $150,000 3 Commercial Loans, BB+ 07,500,000 4 Claims on fore banks 01 ar $7,000 4Off -Balance Sheet Items Conversion Extended to Corporate Customers] Face Value Factor Loan commitment CCC ( 1 year] 53,000,000 50% Standby letter of credit, BBB, Performance related $120,000 50% Commercial Letter of Credit, BB- $75,000 20% a. What is the bank's risk adjusted asset base? b. What are the bank's minimum Tier 1 and Tier II capital if Tier I capital ratio is to be kept at 4% and total risk- based capital ratio at 8%? 6. Consider the following balance sheet information of ABC Bank_ On Balance Sheet Items I Face Value j Category Cash 5140,000 1 US Treasury bills $7,000 1 US Treasury bonds $500,000 1 Federal Reserve shares $9,000 1 Repos secured by federal agencies $160,000 2 Claims on US depository institutions 51,000,000 2 Shorterm (01 year) claim on foreign banks 51,500,000 2 General Obligation municipals $200,000 2 Claims on or guaranteed by federal agencies 530,000 2 Municipal Revenue Bonds $150,000 3 Commercial Loans, BB+ 07,500,000 4 Claims on fore banks 01 ar $7,000 4Off -Balance Sheet Items Conversion Extended to Corporate Customers] Face Value Factor Loan commitment CCC ( 1 year] 53,000,000 50% Standby letter of credit, BBB, Performance related $120,000 50% Commercial Letter of Credit, BB- $75,000 20% a. What is the bank's risk adjusted asset base? b. What are the bank's minimum Tier 1 and Tier II capital if Tier I capital ratio is to be kept at 4% and total risk- based capital ratio at 8%