Question II: Capital Ratios (20 Points) National Bank has the following balance sheet (in millions) and has no off-balance-sheet activities: Assets Cash Treasury bills Liabilities and Equity $20 Deposits $980 40 Subordinated debentures 40 Residential mortgages 600 Common stock 40 Business loans (BB+ rated) 430 Retained earnings 30 Total assets $1,090 Total liabilities and equity $1,090 a. What is the leverage ratio? b. What is the Tier I capital ratio? c. What is the total risk-based capital ratio? d. In what capital category would the bank be placed?