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

question 81

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 ratio of capital to risk-adjusted assets,if the bank has capital of $50 million?

• A)5.00 percent.
• B)5.56 percent.
• C)6.94 percent.
• D)8.33 percent.
• E)6.25 percent.

Explain the significance of external costs and their impact on the environment.

Recognize the role of government in addressing externalities and providing public goods.

Understand the concept of mixed economies and the balance between private and public sectors.

Explain the basic economic questions every country must answer due to resource scarcity.

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Definitions:

Inherently Negative Concepts

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Metaphorical Definitions

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Vague

Vague describes something that is unclear, lacking in precise detail, or not explicitly expressed.

Obscure

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