In the United States a 'well capitalized' bank must have a ratio of capital to risk$-$weighted asset ${?}^4$ at least:

A$.6$ percent

D$.5$ percent.

B$.8$ percent

E$.$ None of the above

C$.10$ percent.

Which of the following would be an example of Tier I capital?

A$.$ Subordinated debt capital instruments with an original maturity of at lcast $5$ ycars

B$.$ Allowance for loan and lease losses

C$.$ Minority interest in the equity accounts of consolidated subsidiaries

D$.$ Intermediate term preferred stock

E$.$ All of the above

A bank has $$100$ million in assets in the $0$ percent risk weight category, $$200$ million in assets in the $20$ percent risk weight category, $$500$ million in assets in the $50$ percent risk weight category and $$750$ million in assets in the $100$ percent risk weight category. This bank has $$57$million in core $($Tier $1)$ capital. What is this bank's ratio of Tier $1$ capital to risk$-$wcighted assets?

A$.3\mathrm{.}68$ percent

D$.5\mathrm{.}48$ percent

B$.7\mathrm{.}6$ percent

E$.$ None of the above

C$.18\mathrm{.}25$ percent

The risk that a customer the bank has entered into a contract with will fail to pay or to perform, forcing the bank to find a replacement contract that may be less satisfactory is what form of risk listed below?

A$.$ Counterparty risk

D$.$ Credit risk

B$.$ Interest$-$rate risk

E$.$ Liquidity risk

C$.$ Operating risk

A customer has a savings deposit for $45$ days. During that time they carn $$5$ in interest and have an average daily balance of $$1000.$ What is the annual percentage yicld on this savings account?

A$.0\mathrm{.}5\%$

D$.4\mathrm{.}5\%$

B$.4\mathrm{.}13\%$

E$.$ None of the above

C$.4\mathrm{.}07\%$

Which of the following assets fits into the $0$ percent risk weight category?

A$.$ Cash

D$.$ GNMA mortgage$-$backed securities

B$.$ Deposits at the Federal Reserve

E$.$ All of the above

C$.$ Treasury Bills

A bank has a ROE of $14$ percent and a ROA of $2$ percent. What is this bank's ecjuity capital to total assets ratio?

A$.7\mathrm{.}00$ percent

D$.16$ percent

B$.14\mathrm{.}29$ percent

E$.$ None of the above

C$.28\mathrm{.}00$ percent

A bank that is 'well$-$capitalized':

A$.$ Faces no significant regulatory restrictions

B$.$ Cannot accept broker placed deposits without regulatory approval

C$.$ Has limits on dividends and management fees it is allowed to pay and limits on the maximum asset growth rate among other restrictions

D$.$ Will be placed into conservatorship or receivership if it its capital level is not increased within a certain time limit$.$

E$.$ None of the above

A lender that makes a loan that violates its written loan policy would be violating which of $6C\text{'}$s of lending?

A$.$ Character

B$.$ Capacity

D$.$ Control

C$.$ Cash

E$.$ Collateral