Use the Following Information for Questions -The Minimum Tier 1 Capital for This Bank Is:
A)

question 33

Multiple Choice

Use the following information for questions
$\begin{array}{c|c|r|c}{\text { Bank Assets }} && \text { RIsk Welght } &\text { Rlsk-A dJusted Assets }\\\hline \text { Cash and Treasury Securities } & \$ 2,000 & 0 \%&\$-\\\hline \text { Repurchase Agreements } & \$ 1,000 & 20 \% &\$ 200 \\\hline \text { Munic ipal Bonds } & \$ 1,500 & 20 \% & \$ 300 \\\hline \text { Single Family Home Mortgages } & \$ 2,700 & 50 \% & \$ 1,350 \\\hline \text { CMOs } & \$ 2,500 & 50 \% & \$ 1,250 \\\hline \text { Commercial Loans } & \$ 1,500 & 100 \% & \$ 1,500 \\\hline \text { Agricultural Loans } & \$ 2,100 & 100 \% & \$ 2,100\\\hline \text { Allowance for Loan Loss } & \$(300) & 0 \% &\$-\\\hline \text { Bank Buildings } & \$ 2,000 & 100 \% &\$2,000\\\hline \text { Total } & \$ 15,000 &&\$8,700\end{array}$
-The minimum Tier 1 capital for this bank is:

---

Definitions:

Emotional Preference

A term indicating an individual's tendency to favor decisions or reactions based on emotions rather than rational analysis.

Robert Zajonc

A psychologist known for his work on the mere-exposure effect and social facilitation, focusing on the interplay between feeling and thinking.

Emotion Precedes Cognition

The theory or observation that emotional responses can occur independently and prior to cognitive processing of a stimulus or situation.

Spillover Effect

refers to the phenomenon where an occurrence in one domain of life affects another, for example, stress from work impacting family life.