question archive Onshore Bank has $20 million in assets, with risk-adjusted assets of $10 million

Onshore Bank has $20 million in assets, with risk-adjusted assets of $10 million

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Onshore Bank has $20 million in assets, with risk-adjusted assets of $10 million. Tieri capitalis , Tel. cap. repurchases $100,000 of common stock with cash the Tier I ratio is 5 percent 4 percent 9 percent None of the answers are correct

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Tier 1 ratio = Tier 1 capital / risk weighted asset

= 500000 / 10000000=

= 0.05 or 5%

Tier 1 ratio = 5%