Required $15 million Checkable Deposits $210 million Reserves Excess Reserves $5 million Bank Capital $15 million Municipal Bonds $70 million Residential Mortgages $65 million Commercial Loans $70 million Under the Basel Accord, calculate the bank's risk-weighted leverage ratio. O 9.1% O 10.9%

Required $15 million Checkable Deposits $210 million Reserves Excess Reserves $5 million Bank Capital $15 million Municipal Bonds $70 million Residential Mortgages $65 million Commercial Loans $70 million Under the Basel Accord, calculate the bank's risk-weighted leverage ratio. O 9.1% O 10.9%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Assets
Liabilities
Required
$15 million
Checkable Deposits
$210 million
Reserves
Excess Reserves
$5 million
Bank Capital
$15 million
Municipal Bonds
$70 million
Residential Mortgages
$65 million
Commercial Loans
$70 million
Under the Basel Accord, calculate the bank's risk-weighted leverage ratio.
9.1%
10.9%
10.1%
11.9%

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