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Premier Bank has decided to increase its residential loans by $450 million and fund this growth by selling the same amount of treasury bills from
Premier Bank has decided to increase its residential loans by $450 million and fund this growth by selling the same amount of treasury bills from its asset portfolio. If it does not change its other assets and its capital remains the same, the bank's Tier 1 Capital Ratio: Select one: A. will decrease because it will lose interest income from treasury bills B. will not change because its capital has not changed. C. will not change because the total assets have not changed. D. will decrease because the assets will have higher risk. E. will decrease because the assets will become less liquid
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