Note: the Residential Mortgages All Have a Loan-To-Value of Between

question 100

Multiple Choice

$\begin{array}{lccc} \text {Cash and Treasury securities}& \text { \$ 100 million}\\ \text { FedFunds Sold }& \text { \$ 100 million}\\ \text { Resiclential Mortgages 1-4 family}& \text { \$ 200 million}\\ \text {Commercial Loans }& \text { \$ 600 million}\\\end{array}$
Note: The residential mortgages all have a loan-to-value of between 60 and 80 percent.
What is the amount of risk-adjusted assets?

• A)$1,000 million.
• B)$720 million.
• C)$900 million.
• D)$600 million.

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Definitions:

Balance Sheet

A document detailing a business's assets, liabilities, and equity of shareholders at a particular moment, offering an overview of its financial health.

Spreadsheet

A digital document where data is arranged in rows and columns, commonly used for calculations and data analysis.

Job-Order Costing

An accounting method where costs are assigned to specific jobs or batches, allowing for a detailed tracking of production costs.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, rent, and salaries for employees not directly involved in production.