Consider a bank with the following balance sheet:

The bank commits to a loan agreement for $10 million to a commercial customer. Calculate the bank€™s capital ratio before and after the agreement. Calculate the bank€™s risk-weighted assets before and after the agreement. Problems 4 through 11 relate to a sequence of transactions at OldhatFinancial.

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Assets Liabilities Required Checkable $8 millionDepits $100 million Excess Bank Capital $8million Reserves $3 million T-bills Mortgages $40 million Commercial Loans $45 million $10 million