Use Table 10. Suppose the bank in Table 10 loses $2 in loans. Calculate the new risk weighted capital ratio. Use weights of 0.74 for risky assets and zero for risk free assets. Reserves Real Estate Loans Treasury Securities Commerical Loans 13.68% O 10.40% 18.89% Assets 10.13% Table 10 10 30 20 65 Liabilities Deposits Borrowing 40 70
Use Table 10. Suppose the bank in Table 10 loses $2 in loans. Calculate the new risk weighted capital ratio. Use weights of 0.74 for risky assets and zero for risk free assets. Reserves Real Estate Loans Treasury Securities Commerical Loans 13.68% O 10.40% 18.89% Assets 10.13% Table 10 10 30 20 65 Liabilities Deposits Borrowing 40 70
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 1bM
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![Use Table 10. Suppose the bank in Table 10 loses $2 in loans. Calculate the
new risk weighted capital ratio. Use weights of 0.74 for risky assets and zero
for risk free assets.
Reserves
Real Estate Loans
Treasury Securities
Commerical Loans
13.68%
O 10.40%
18.89%
Assets
10.13%
Table 10
10
30
20
65
Liabilities
Deposits
Borrowing
40
70](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87a10f83-bfc3-410a-9d94-dfca4c1b702b%2F8e3b1e8e-dfe7-4bd8-80ae-4b16bafa3afc%2Fnw1kgy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use Table 10. Suppose the bank in Table 10 loses $2 in loans. Calculate the
new risk weighted capital ratio. Use weights of 0.74 for risky assets and zero
for risk free assets.
Reserves
Real Estate Loans
Treasury Securities
Commerical Loans
13.68%
O 10.40%
18.89%
Assets
10.13%
Table 10
10
30
20
65
Liabilities
Deposits
Borrowing
40
70
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