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Consider a bank with the following balance sheet: In Millions of Dollars Assets Liabilities $ Required reserves Checkable 17 deposits $205 $ Excess reserves Bank
Consider a bank with the following balance sheet: In Millions of Dollars Assets Liabilities $ Required reserves Checkable 17 deposits $205 $ Excess reserves Bank capital $10 3 Municipal Bonds $ 65 Residential $ 70 Mortgages Commercial loans 60 a) Calculate the bank's risk-weighted assets in 5 millions to 1 decimal place. $ millions $ b) Calculate the bank's risk weighted capital requirements according to Basel I in $ millions to 1 decimal place. $ millions c) Does the bank meet the Basel I minimum capital requirements (Y/N)
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