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Part I. Multiple Choice Answer the next three questions based on the table below for a bank's balance sheet. 1) The bank's Tier I leverage

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Part I. Multiple Choice Answer the next three questions based on the table below for a bank's balance sheet. 1) The bank's Tier I leverage ratio is a) 10.0% b) 12.5% c) 16.7% d) 25.0% e) 33.3% 2) The bank's Tier I risk-based capital ratio is a) 10.0% b) 12.5% c) 16.7% d) 25.0% c) 33.3% 3) The bank's Total risk-based capital ratio is a) 10.0% b) 12.5% c) 16.7% d) 25.0% e) 33.3% Use the table above and this new information to answer the next three questions. Now suppose that the bank raises $10 more in deposits and uses the funds to purchase $10 more in government securities. 4) Taking this transaction into consideration, the bank's new Tier I leverage ratio is a) 9.1% b) 10.0% c) 12.5% d) 16.7% e) 33.3%

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