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Consider a bank with the following balance sheet: Assets ($) Liabilities ($) Desired Reserves 8,000,000 Chequable Deposits 120,000,000 Excess Reserves 3,000,000 Bank Capital 6,000,000 T-bills
Consider a bank with the following balance sheet: Assets ($) Liabilities ($) Desired Reserves 8,000,000 Chequable Deposits 120,000,000 Excess Reserves 3,000,000 Bank Capital 6,000,000 T-bills 45,000,000 Commercial Loans 70,000,000 The bank makes a loan commitment for $15,000,000 to a commercial customer. Calculate the bank's capital ratio before and after the agreement. Calculate the bank's risk-weighted assets before and after the agreement. Calculate the bank's capital ratio before and after the agreement: The bank's capital ratio before the agreement is %. (Round to two decimal places). The bank's capital ratio after the agreement is % . (Round to two decimal places). Calculate the bank's risk-weighted assets before and after the agreement: The bank's risk-weighted assets before the commitment are $. (Round to the nearest dollar). The bank's risk-weighted assets after the commitment are $ (Round to the nearest dollar)
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