Fifth Bank Has the Following Balance Sheet with Values Stated

question 32

Multiple Choice

Fifth Bank has the following balance sheet with values stated in millions of dollars.All assets are associated with corporate customers (not governments or sovereigns) .Refer to Table 20-8 for associated risk weights. $$\begin{array} { | l | r | l | r | } \hline \text { Cash } & \$ 80 & \text { Deposits } & \$ 550 \\\hline \begin{array} { l } \text { Municipal General } \\\text { Obligation Bonds }\end{array} & \$ 100 & & \\\hline \begin{array} { l } \text { Residential Mortgages 1-4 family } \\\text { (LTV } 60 \% - 80 \%) \end{array} & \$ 220 & \text { Long-Term Debt } & \$ 290 \\\hline \text { Commercial loans } & \$ 500 & \text { Equity } & \$ 60 \\\hline \text { Total Assets } & \$ 900 & & \$ 900 \\\hline\end{array}$$ In addition, Fifth Bank has off-balance sheet items as follows: (Refer to Tables 20-10 and 20-11) $50 million in commercial letters of credit (LCs) ,
$300 million in 3-year interest rate swaps that are in-the-money by $2 million
$50 million in 4-year forward FX contracts that are out-of-the money by $2 million
What are the total risk-weighted off-balance-sheet assets of the bank as defined under the Basel II standards?

• A)$400 million.
• B)$16.5 million.
• C)$11.5 million.
• D)$13.5 million.
• E)$18.5 million.

Identify different sources of income for college students, including student loans, scholarships, grants, and work-study programs.

Differentiate between fixed and variable expenses.

Recognize the necessity of tracking expenses to effectively manage a budget.

Understand the role of needs versus wants in budgeting and financial planning.

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Definitions:

Express Terms

Specific conditions and provisions explicitly stated in a contractual agreement.

UCC Article 2

A section of the Uniform Commercial Code that governs the sale of goods, ensuring standardized transactions across state lines.

Statute of Frauds

A legal requirement that certain types of contracts be in writing and signed by the parties involved to be enforceable.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by all parties involved to be legally enforceable.