Which of the following statement is correct? i. Commercial bank is a Banking Financial Institution ii. Insurance Company is a Non -Banking Financial Institution a. Only i O b. Both i and ii are incorrect O c. Both i and ii are correct O d. Only ii

Which of the following statement is correct? i. Commercial bank is a Banking Financial Institution ii. Insurance Company is a Non -Banking Financial Institution a. Only i O b. Both i and ii are incorrect O c. Both i and ii are correct O d. Only ii

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter28: Monetary Policy And Bank Regulation

Section: Chapter Questions

Problem 14RQ: In a program of deposit insurance as it is operated in the United States, what is being insured and...

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Question

Which of the following statement is correct?
i. Commercial bank is a Banking Financial
Institution
ii. Insurance Company is a Non -Banking Financial
Institution
O a. Only i
O b. Both i and ii are incorrect
O c. Both i and ii are correct
O d. Only ii

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The bank's assets are $1M of cash, $50M of commercial loans, $9M of Treasury bonds, and $100M of mortgages. The bank also has $140M of non-transaction deposits and $10M of preferred stock that matures in ten years. The allowance for loan losses is $3M. a. Calculate the total assets 1. b. Calculate the risk-adjusted assets 120 c. What are the common equity Tier I (CET1) risk-based capital ratio, Tier I risk-based capital ratio, the total risk-based capital ratio, and the total capital (leverage) ratio?