Question 4 (a) Explain the meaning of bank capital and discuss its importance and impact on the management and viability of a bank. Describe the key links links between capital and risk exposure in banking (20 marks) (b) Alaska Bank reports the following items on its balance sheet: Cash $200 million; U.S. government securities $150 million; Residential real-estate loans $300 million; and Corporate loans $350 million. The items in the bank's off-balance sheet are as follows: (i) Standby credit letters $20 million and Long-term credit commitments to corporations $160 million. Calculate Alaska Bank's total risk-weighted assets. (15 marks) If Alaska Bank had reported that its Tier I capital is $30 million and its Tier 2 capital is $20 million. Explain if Alaska bank is having a capital deficiency. (15 marks) (ii)