Question: Suppose Red River National Bank whose balance sheet is given

Suppose Red River National Bank, whose balance sheet is given in problem 5, reports the forms of capital shown in the following table as of the date of its latest financial statement. What is the total dollar volume of Tier 1 capital? Tier 2 capital? Calculate the Tier 1 capital-to-risk-weighted- assets ratio, total capital-to-risk-weighted-asset ratio, and the leverage ratio. According to the data given in Problems 5 and 6, does Red River have a capital deficiency? What is its PCA capital adequacy category?

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