Oldhat Financial starts it's day of operations with $11 million in capital. A total of $125

million in chequable deposits are received. The bank makes a $30 million commercial

loan and another $60 million in mortgages with the following terms: 200 standard 30-

year fixed rate mortgages with a nominal annual rate of 5.25% each for 300,000. Assume

that desired reserves are 8%.

a. Make Bank's balance sheet.

b. What is the leverage ratio for Oldhat Financial? Is it well capitalized?

c. Calculate the risk-weighted assets of Oldhat Financial after the first day.

d. Calculate the risk-weighted capital ratio after the first day