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Consider a bank with the following balance sheet: Assets Liabilities Required Reserves $ 22 million Excess Reserves $ 8 million T-bills $ 30 million Mortgages

Consider a bank with the following balance sheet:

Assets Liabilities

Required Reserves $ 22 million

Excess Reserves $ 8 million

T-bills $ 30 million

Mortgages $ 70 million

Commercial Loans $100 million

Checkable Deposits $220 million

Bank Capital $ 10 million

Calculate the banks risk-weighted assets and risk-weighted capital ratio.

Hint: Reserves and T-bills have a zero weight. Mortgages carry a 50% weight. Commercial loans carry a 100% weight.

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