QUESTION 20 Consider a bank with the following balance sheet: Assets Liabilities Required reserves $ 17 million Checkable deposits $185 million Excess reserves $33 million Bank capital $30 million Municipal Bonds $25 million Residential Mortgages $120 million Commercial loans $20 million Calculate the bank's risk-weighted assets (RWA) and determine whether it satisfies the risk weighted capital requirements set by Basel I. Hint: Use the following table. Category Weight Example 1 2 02 3 05 4 1 0 Reserves and treasures Clams on banks in OECD countries Municipal bonds and residential mortgages Loans to consumers and corporations O RWA-$120 million. The bank is complying with the capital requirements set by Basel ORWA-$140.5 million. The bank is complying with the capital requirements set by Basel I. O RWA-$185.5 million. The bank is complying with the capital requirements set by Basel O RWA-$98.5 million. The bank is not complying with the capital requirements set by Baseli O None of the above