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Question 4 (worth 25 points) Consider a bank with the following balance sheet: Assets Liabilities Required reserves $17 Checkable deposits $185 Excess reserves $33 Bank

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Question 4 (worth 25 points) Consider a bank with the following balance sheet: Assets Liabilities Required reserves $17 Checkable deposits $185 Excess reserves $33 Bank capital $30 Municipal Bonds $25 Residential Mortgages $120 Commercial loans $20 Calculate the bank's risk-weighted assets (RWA) and determine whether it satisfies the risk- weighted capital requirements set by Basel I. Show your work. No work, no credit. Question 4 (worth 25 points) Consider a bank with the following balance sheet: Assets Liabilities Required reserves $17 Checkable deposits $185 Excess reserves $33 Bank capital $30 Municipal Bonds $25 Residential Mortgages $120 Commercial loans $20 Calculate the bank's risk-weighted assets (RWA) and determine whether it satisfies the risk- weighted capital requirements set by Basel I. Show your work. No work, no credit

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