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First Springfield Bank has the following balance sheet (in millions of dollars, with the risk weights in parentheses) Cash (0%) $10 Deposits $190 Municipal G.O.
First Springfield Bank has the following balance sheet (in millions of dollars, with the risk weights in parentheses)
Cash (0%) $10 Deposits $190
Municipal G.O. bonds (20%) $20
Residential 14 family
mortgages (50%) $80 Long term Debt $5
Commercial loans,
BB + rated (100%) $ 90 Equity $5
Total $200 $200
What is the amount of risk adjusted on-balance-sheet assets of the bank as defined under the Basel standards?
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