Question: this was how the question was given, the answer is supposed to be A.11.49% but im not sure how to get there. 14. Use Table
this was how the question was given, the answer is supposed to be A.11.49% but im not sure how to get there.
14. Use Table 4. Suppose the bank loses $8 in loans. Calculate the new risk weighted capital ratio. Use weights of 0.7 for risky assets and zero for risk free assets. Table 4 Assets Liabilities Reserves Real Estate Loans Treasury Securities Commerical Loans 10 Deposits 30 Borrowi 20 65 40 70 A. 1 1 .49% B. 5.16% C.13 % D. 5.60% 14. Use Table 4. Suppose the bank loses $8 in loans. Calculate the new risk weighted capital ratio. Use weights of 0.7 for risky assets and zero for risk free assets. Table 4 Assets Liabilities Reserves Real Estate Loans Treasury Securities Commerical Loans 10 Deposits 30 Borrowi 20 65 40 70 A. 1 1 .49% B. 5.16% C.13 % D. 5.60%
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