question archive Onshore Bank has $20 million in assets, with risk-adjusted assets of $10 milion
Onshore Bank has $20 million in assets, with risk-adjusted assets of $10 milion
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Onshore Bank has $20 million in assets, with risk-adjusted assets of $10 milion. Tier I capital is $500,000 and Tier le capital is $400,000. The bank issues $1 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds frisk weight-20 percent the total capital ratio will be 8.45 percent 19.55 percent 18.63 percent None of the answers are correct
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new risk adjusted assets = 10 + 0.2 = 10.2 million
total capital = 0.5 + 0.4 = 0.9 million
total capital ratio = 0.9/10.2 = 8.8%
none of the above is correct
