Answered step by step
Verified Expert Solution
Link Copied!

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.

  1. Require reserves $150 billion
  2. Excess reserves $50 billion
  3. U.S. Treasury bills $500 billion
  4. Claims on BNP Paribas (A bank based in France) $10 billion
  5. Claims on Unicredit (A bank based in Italy) $15 billion
  6. Connecticut state bonds $80 billion
  7. Mortgages $700 billion
  8. Car loans $300 billion
  9. Corporate loans $800 billion
  10. Checkable deposits $2,000 billion
  11. 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Cornerstone Of Business Decision Making

Authors: Jay S Rich, Jeff Jones, Linda Ann Myers

5th Edition

0357132696, 978-0357132692

More Books

Students also viewed these Accounting questions

Question

Connect with your audience

Answered: 1 week ago