2.

3.

Below are data for ABC Bank, which has 3,000 in total assets and 2,000 in risk-weighted assets. All items are on the Liabilities and Stockholder's Equity side of the balance sheet unless otherwise indicated. Cumulative perpetual preferred stock 20 Common stock 230 Allowance for loan losses (contra-asset) 45 Goodwill asset) 25 Cash (asset) 50 Subordinated unsecured debt, 10-year remaining maturity Tier 1 common equity capital equals 40 175 155 225 205 0135 Below are data for ABC Bank, which has 3,000 in total assets and 2,000 in risk-weighted assets. All items are on the Liabilities and Stockholder's Equity side of the balance sheet unless otherwise indicated. Cumulative perpetual preferred stock 20 Common stock 230 Allowance for loan losses (contra-asset) 45 Goodwill asset) 25 Cash (asset) 50 Subordinated unsecured debt, 10-year remaining maturity 40 Tier 2 capital equals 65 75 85 105 0135 Which of the following actions would increase the Tier 1 leverage ratio of a bank? Selling a residential mortgage loan to Fannie Mae, and using the proceeds to repay maturing CDs Issuing a new CD to a local depositor, and using the proceeds to purchase a Treasury Bond Both would increase the Tier 1 leverage ratio Neither would increase the Tier 1 leverage ratio Below are data for ABC Bank, which has 3,000 in total assets and 2,000 in risk-weighted assets. All items are on the Liabilities and Stockholder's Equity side of the balance sheet unless otherwise indicated. Cumulative perpetual preferred stock 20 Common stock 230 Allowance for loan losses (contra-asset) 45 Goodwill asset) 25 Cash (asset) 50 Subordinated unsecured debt, 10-year remaining maturity Tier 1 common equity capital equals 40 175 155 225 205 0135 Below are data for ABC Bank, which has 3,000 in total assets and 2,000 in risk-weighted assets. All items are on the Liabilities and Stockholder's Equity side of the balance sheet unless otherwise indicated. Cumulative perpetual preferred stock 20 Common stock 230 Allowance for loan losses (contra-asset) 45 Goodwill asset) 25 Cash (asset) 50 Subordinated unsecured debt, 10-year remaining maturity 40 Tier 2 capital equals 65 75 85 105 0135 Which of the following actions would increase the Tier 1 leverage ratio of a bank? Selling a residential mortgage loan to Fannie Mae, and using the proceeds to repay maturing CDs Issuing a new CD to a local depositor, and using the proceeds to purchase a Treasury Bond Both would increase the Tier 1 leverage ratio Neither would increase the Tier 1 leverage ratio