Suppose a bank has total assets of $4,000,000,000, of which $1,000,000,000 are cash assets and government securities with a "risk weight" of 0% and $3,000,000,000 are loans with a risk weight of 50%

The bank has total deposits and other liabilities of $3,500,000,000. The bank's risk-based capital ratio is A) 14.3%.
B) 25.0%.
C) 33.3%.
D) 37.5%.


C

Economics

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