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Question 12 The following commercial bank which has capital of S 50 million and following assets Cash and Treasury securities (credit-risk wt. 0 % )
Question 12 The following commercial bank which has capital of S 50 million and following assets Cash and Treasury securities (credit-risk wt. 0 % ) Fed Funds sold (credit-risk wt 20 % i.e. 0.2 ) Residential Mortgages (credit-risk wt 50 % ie. 0.5 ) Commercial Loans (credit-risk wt. 100 % ie. 1.0) $ 600 million If the bank has capital of S 50 million, what is the amount of credit-risk adjudted assets? $ 100 million 100 million S 200 million O $ 900 million O S 1000 million O S 600 million $720 million
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