Suppose That a Bank Has $30 Million in Asset X,$10

question 71

Multiple Choice

Suppose that a bank has $30 million in asset X,$10 million in asset Y,and $20 million in asset Z.Each asset has a different risk weight.The risk weight for asset X is 30%,the risk weight for asset Y is 60%,and the risk weight for asset Z is 10%.The amount of risk-weighted assets for this bank is ____________ million.Assuming that the bank has to hold capital equal to 8% of its risk-weighted assets,the bank must hold _____________ million in capital.

• A)$17;$13,6
• B)$60;$4.8
• C)$17;$1.36
• D)$66;$5.28

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Definitions:

Heroin

An opioid drug derived from morphine, highly addictive and illegal in most countries.

LSD

Lysergic acid diethylamide, a powerful hallucinogenic drug known for altering perception, mood, and various cognitive processes.

Psychedelic

Substances that produce altered states of consciousness, characterized by changes in perception, mood, and thought.

Mescaline

A psychedelic compound derived from certain cacti, known for its hallucinogenic effects on human perception and consciousness.