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Assets value Risk Weight Factors Cash 120 0% U.S Treasury Securities 240 0% Bank Reserves 60 0% U.S Gov't Agency Securities 20 20% Mortgage Loans

Assets value Risk Weight Factors
Cash 120 0%
U.S Treasury Securities 240 0%
Bank Reserves 60 0%
U.S Gov't Agency Securities 20 20%
Mortgage Loans 350 50%
Consumer Loans 150 100
Construction Loans 10 100
Corp Debt Securities 50 100
TOTAL 1000
Liabilites & Equities
Transaction Deposits 700
Saving Accounts 100
Negoitated CDs 50
Repos 70
Subordinated Debt 20
TOTAL Liabilities 940
Common Equity 30
Retained Earnings 15
Preferred Stocks 15
TOTAL Equity 60

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According to the Blue Table above, which Zone does it belong to?

TABLE 13-4 Spe cifications of Capital Cate gories for Prompt Corrective Action Common Equity Tier I Risk-Based Ratio Tier I Risk-Based Total Risk-Based Leverage Zone Ratio Ratio Ratio Capital Directive/Other 6.5% or above 1. Well capitalized and and and and Not subject to a capital directive to meet a specific level for any capital measure 8% or above 10% or above 5% or above 2. Adequately capitalized 4.5% or above and and and and 6% or above 8% or above 4% or above Does not meet the definition of well capitalized 3.Undercapitalized Under 4.5% Under 6% Under 8% Under 4% or or or 4. Significantly undercapitalized Under 3% or Under 6% or Under 8% or Under 4% 5. Critically undercapitalized Tangible equity/Total assets 2%

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