1. Calculate the Tier 1 capital the bank has.

Bank Assets Risk Weight Bank Liabilities Cash and Treasury Securities $ 2.000 0% Deposits $ Repurchase Agreements $ 1,000 20% Hot Money $ Municipal Bonds $ 1,500 20% Subordinated Debt $ Single Family Home Mortgages $ 2,700 50% Common Stock $ CMOS $ 2,500 50% Surplus $ Commercial Loans $ 1,500 100% Retained Eamings $ Agricultural Loans $ 2,100 100% Allowance for Loan Loss $ (300) 0% Bank Buildings $ 2,000 100% Total $ 15,000 $ on 8,000 6,000 250 100 300 350 15,000