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Consider a bank with the following balance sheet: Assets Liabilities Required Reserves $16 million Checkable Deposits $190 million Excess Reserves $6 million Bank Capital $12

Consider a bank with the following balance sheet: Assets Liabilities Required Reserves $16 million Checkable Deposits $190 million Excess Reserves $6 million Bank Capital $12 million T-bills $90 million Mortgages $70 million Commercial Loans $20 million Calculate the banks risk-weighted assets. Assume a default rate of 30% for mortgages and 50% for commercial loans.

a) $202,000,000

b) $178,000,000

c) $143,000,000

d) $146,000,000

e) $171,000,000

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