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7. Calculate the following using information below Bank Assets Cash and Treasury Securities Repurchase Agreements Municipal Bonds Single Family Home Mortgages $ 2,700 CMOS $
7. Calculate the following using information below Bank Assets Cash and Treasury Securities Repurchase Agreements Municipal Bonds Single Family Home Mortgages $ 2,700 CMOS $ 2.500 $ 1.500 2,100 Commercial Loans Agricultural Loans Allowance for Loan Loss Bank Buildings Total $ 2.000 $ 1.000 1.500 $ ANSWER: $ S (300) 5 2.000 $15.000 Risk Weight 20% 20% 50% 50% 100% 100% 8. Given the following information, calculate: a) If the bank has total assets (in thousands) of $2,840,000, does it have adequate capital under 1 regulatory standards? b) If risk-adjusted assets equal $2,000,000, is capital adequate? c) If an analysis of market risk revealed that the bank's value-at-risk (VAR) equals $300,000, and its adjusted value of credit-risk-weighted assets equals $1,500,000, is capital still adequate?
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