Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bank of China has the following items on its balance sheet. Require reserves $150 billion Excess reserves $50 billion U.S. Treasury bills $500 billion Claims
Bank of China has the following items on its balance sheet.
- Require reserves $150 billion
- Excess reserves $50 billion
- U.S. Treasury bills $500 billion
- Claims on BNP Paribas (A bank based in France) $10 billion
- Claims on Unicredit (A bank based in Italy) $15 billion
- Connecticut state bonds $80 billion
- Mortgages $700 billion
- Car loans $300 billion
- Corporate loans $800 billion
- Checkable deposits $2,000 billion
- Savings deposits $300 billion
Assuming that all the asset and liabilities of Bank of China have been listed above, what is the risk-weighted asset (in billions of $) of the bank? Round your answer to at least 2 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started