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Please show all working, thank you. QUESTION ONE ASSETS Cash & Treasury Securities Repurchase Agreements Municipal Bonds Single Family Home Mortgages CMOs Commercial Loans Agricultural

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QUESTION ONE ASSETS Cash & Treasury Securities Repurchase Agreements Municipal Bonds Single Family Home Mortgages CMOs Commercial Loans Agricultural loans Bank Buildings TOTAL Risk Weighted Assets Amount ($) Risk Weight Amount $2,000 0% 1000 20% 200 1500 20% 300 2700 50% 1350 2500 50% 1500 100% 1500 2100 100% 2000 100% 2000 $15,300 $5,350 a. What is the Risk - Weighted asset amount for cash and treasury securities? b. What is the Risk - Weighted asset amount for CMOs? c. How many dollars of Category 2, Category 3 and Category 4 assets does the bank have? d. What is the minimum Tier 1 capital for this bank? e. What is the minimum Total capital for this bank? f. Why does cash have a 0% risk weight under BASEL 1

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