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Question 26 1 pts Q26 Friendly Bank's balance sheet is given below (in millions of dollars). Suppose all banks must meet two capital requirements. First
Question 26 1 pts Q26 Friendly Bank's balance sheet is given below (in millions of dollars). Suppose all banks must meet two capital requirements. First is a risk-based capital requirement of 20%, with risk weights of 0% for cash, 50% for home mortgages, and 100% for business loans. Second is a leverage requirement of 12%. Which of the two capital requirements does Friendly Bank currently satisfy? Assets Liabilities and equity Cash reserves Home mortgages Business loans Deposits Equity 88 12 20 70 O leverage requirement only both requirements O neither requirement Orisk-based requirement only
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