The Basel Accords (I, II, III, and now IV) make extensive use of "Risk-Weighted Assets" (RWA).
Suppose The Entrepreneurs Bank has the following assets.
	U.S. government bonds				$40,000,000
	OECD bank liabilities				$65,000,000
	Uninsured residential mortgage Loans				$100,000,000
	Corporate Loans				$80,000,000
	If these are the risk weights prescribed by the Basel Accords . . .
	Risk Weight (%)		Asset Category
		0	Cash, gold bullion, government bonds, insured residential mortgages.
		20	Obligations of OECD banks and OECD public agencies
		50	Uninsured residential mortgages
		100	Corporate bonds, debt of developing countries, obligations of non-OECD banks
	a.	Calcualate the bank's RWA:
	b.	If the bank is required to hold 8% of its RWA as capital, how much
		capital must it hold?