Appendix 13ECalculating Risk-Based Capital Ratios 3 (continued) TABLE 1328Risk Weights for Calculating Risk-Weighted Assets for On-Balance-Sheet Items under Basel III Exposures Risk Weight (in percent) 1. Exposures to sovereigns Exposures to the U.S. government: An exposure to the U.S. government, its central bank, or a U.S. government agency 0 The portion of an exposure that is directly and unconditionally guaranteed by the U.S. government, its central bank, or a U.S. government agency 0 The portion of an exposure that is conditionally guaranteed by the U.S. government, its central bank, or a U.S. government agency 20 Other sovereign exposures: CRC of 0-1 0 CRC of 2 20 CRC of 3 50 CRC of 4-6 100 CRC of 7 150 OECD member with no CRC 0 Non-OECD member with no CRC 100 Sovereign default 150 2. Exposures to certain supranational entities and multilateral development banks (MDBs) An exposure to the BIS, the ECB, the European Commission, the IMF, or an MDB 0 3. Exposures to government-sponsored entities (GSEs) An exposure to a GSE other than an equity exposure or preferred stock 20 An exposure to preferred stock issued by a GSE 100 4. Exposures to depository institutions, foreign banks, and credit unions Exposures to U.S. depository insitutions and credit unions 20 Exposures to foreign banks: CRC of 0-1 20 CRC of 2 50 CRC of 3 100 CRC of 4-7 150 OECD member with no CRC 20 Non-OECD member with no CRC 100 Sovereign default 150 5. Exposures to public-sector entities (PSEs): General obligation exposures to U.S. PSEs 20 Revenue obligation exposures to U.S. PSEs 50 General obligation exposures to non-U.S. PSEs: CRC of 0-1 20 CRC of 2 50 CRC of 3 100 CRC of 4-7 150 OECD member with no CRC 20

What is the contribution to the asset base of the following items under the Basel III requirements? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers in dollars not in millions.)

a. $10 million cash reserves.

b. $50 million 91-day U.S. Treasury bills.

c. $25 million cash items in the process of collection.

d. $5 million UK government bonds, OECD CRD rated 1.

e. $5 million French short-term government bonds, OECD CRD rated 2.

f. $1 million general obligation bonds.

g. $40 million repurchase agreements (against U.S. Treasuries).

h. $2 million loan to foreign bank, OECD rated 3.

i. $500 million 1-4 family home mortgages, category 1, loan-to-value ratio 80%.

j. $10 million 1-4 family home mortgages, category 2, loan-to-value ratio 95%.

k. $5 million 1-4 family home mortgages, 100 days past due.

l. $500 million commercial and industrial loans, AAA-rated.

m. $500 million commercial and industrial loans, B-rated.

n. $100,000 performance-related standby letters of credit to a AAA-rated corporation.

o. $100,000 performance-related standby letters of credit to a municipality issuing general obligation bonds.

p. $7 million commercial letter of credit to a foreign bank, OECD CRC rated 2.

q. $3 million five-year loan commitment to a foreign government, OECD CRC rated 1.

r. $8 million bankers acceptance conveyed to a U.S. AA-rated corporation.

s. $17 million three-year loan commitment to a private agent.

t. $17 million three-month loan commitment to a private agent.

u. $30 million standby letter of credit to back an A-rated corporate issue of commercial paper.

v. $4 million five-year interest rate swap with no current exposure.

w. $6 million two-year currency swap with $500,000 current exposure.