Question

Consider a bank with the following balance sheet: Assets Liabilities Required Reserves $ 8 million Checkable...

Consider a bank with the following balance sheet:

Assets

Liabilities

Required Reserves

$ 8 million

Checkable Deposits

$100 million

Excess Reserves

$ 3 million

Bank Capital

$    6 million

T-bills

$45 million

Commercial Loans

$50 million

Calculate the bank’s risk-weighted assets.

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