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What is the risk-weighted amount of the following $1,000,000 of assets? Cash $50,000(risk-weight 0) Treasury Securities $100,000 (risk-weight 0) Municipal Bonds$50,000 (risk-weight .20) Residential Mortgages

What is the risk-weighted amount of the following $1,000,000 of assets?

Cash $50,000(risk-weight 0)

Treasury Securities $100,000 (risk-weight 0)

Municipal Bonds$50,000 (risk-weight .20)

Residential Mortgages with 70% loan-to-value $200,000 (risk-weight 0.20)

Commercial Loans $600,000 (risk-weight 1.00)

Group of answer choices

  1. $550,000
  2. $1,000,000
  3. $650,000
  4. $700,000

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