Consider the following balance sheet of a financial institution

Assets Liabilities

Loans: 1020 Deposits: 1200

Investments: 600 Borrowings: 260

Reserves: 460

Total Assets 2080 Total Liabilities: 1460

Equity: 620

The capital ratio of the financial institution is_______, and its leverage is ________.

(a) 42.5%; 2.4

(b) 42.5%; 3.4

(c) 29.8%; 2.4

(d) 29.8%; 3.4

Please choose the correct answer and explain step by step