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

question 111

Multiple Choice

$\begin{array}{c}\begin{array}{lll} \text {Cash and Treasury securities}\\ \text {Fed Funds Sold}\\ \text {Residential Mortgages 1-4 family}\\ \text {Commercial Loans}\end{array}\begin{array}{lll} \text { \$ 100 million}\\ \text {\$ 100 million}\\ \text { \$ 200 million}\\ \text {\$ 600 million}\end{array}\end{array}$
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.

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Definitions:

Radial Pulse

The pulse felt at the wrist where the radial artery runs, commonly used to measure heart rate.

Correct Measurement

The act of obtaining accurate and precise dimensions, capacity, quantity, or extent of something.

Heart Failure

A chronic condition in which the heart is unable to pump blood efficiently to meet the body's needs.

Restless

Characterized by an inability to relax or remain still, often due to anxiety, boredom, or other psychological stressors.