Oldhat Financial starts its first day of operations with \($11\) million in capital. A total of \($120\) million in checkable deposits are received. The bank makes a \($30\) million commercial loan and another \($40\) million in mortgages with the following terms: 200 standard, 30-year, fixed-rate mortgages with a nominal annual rate of 5.25%, each for \($200\),000.

Assume that required reserves are 8%.

a. What does the bank balance sheet look like?

b. How well capitalized is the bank?

c. Calculate the risk-weighted assets and risk-weighted capital ratio after Oldhat’s first day.