question archive Cash and Treasury securities $100 million Fed Funds Sold $100 million Residential Mortgages 1-4 family $200 million Commercial Loans, BB+ rated $600 million If the bank has capital of $50 million, what is the leverage ratio? 5
Cash and Treasury securities $100 million Fed Funds Sold $100 million Residential Mortgages 1-4 family $200 million Commercial Loans, BB+ rated $600 million If the bank has capital of $50 million, what is the leverage ratio? 5
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Cash and Treasury securities $100 million Fed Funds Sold $100 million Residential Mortgages 1-4 family $200 million Commercial Loans, BB+ rated $600 million If the bank has capital of $50 million, what is the leverage ratio? 5.00 percent. 8.33 percent. 25.0 percent. none of the answers are correct
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Answer :
Risk unadjusted leverage ratio= Capital/Total Assets
=50/(100+100+200+600)
=5.000%
Therefore Option 1 is correct.
