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begin{tabular}{|l|c|l|c|} hline multicolumn{2}{|c|}{ Assets } & multicolumn{2}{c|}{ Liabilities } hline Cash & $10 & Deposits & $85 hline U.S. Govt Securities & 15

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\begin{tabular}{|l|c|l|c|} \hline \multicolumn{2}{|c|}{ Assets } & \multicolumn{2}{c|}{ Liabilities } \\ \hline Cash & $10 & Deposits & $85 \\ \hline U.S. Govt Securities & 15 & Subordinated Debt & 5 \\ \hline Residential Mortgages & 40 & Common Stock & 10 \\ \hline Commercial Real Estate & 40 & & \\ \hline Allowance for Credit Losses & (5) & & \\ \hline Total Assets & 100 & Total Liabilities & 100 \\ \hline \end{tabular} Use the table above and this new information to answer the next three questions. Now suppose that the bank raises $10 more in deposits and uses the funds to purchase $10 more in government securities. 4) Taking this transaction into consideration, the bank's new Tier I leverage ratio is a) 9.1% b) 10.0% c) 12.5% d) 16.7% e) 33.3% 1 5) The bank's new Tier I risk-based capital ratio is a) 9.1% b) 10.0% c) 12.5% d) 16.7% c) 33.3% 6) The bank's new Total risk-based capital ratio is a) 9.1% b) 10.0% c) 12.5% d) 16.7% e) 33.3%

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