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The following commercial bank which has capital of $ 50 million and following assets: Cash and Treasury securities (credit-risk wt. 0 %). $ 100 million
The following commercial bank which has capital of $ 50 million and following assets: Cash and Treasury securities (credit-risk wt. 0 %). $ 100 million Fed Funds sold (credit-risk wt. 20 % i.e. 0.2) $ 100 million Residential Mortgages (credit-risk wt. 50 % i.e. 0.5) $ 200 million Commercial Loans (credit-risk wt. 100 % i.e. 1.0) $ 600 million If the bank has capital of $ 50 million, what is the (risk-unadjusted) Leverage Ratio? O 8.33 percent O 25 percent O 5 percent O 50 percent
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