Use the Following Information for Questions -The Minimum Total Capital for This Bank Is:
A) $348

question 26

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 total capital for this bank is:

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Definitions:

Full Employment

An economic situation where all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical unemployment.

Cyclical Unemployment

Unemployment that rises during economic downturns and falls when the economy improves.

Seasonal Unemployment

Joblessness linked to seasonal variations in demand or supply of labor in certain industries.

Cyclical Unemployment

A type of unemployment that relates to the cyclical trends in the economy, fluctuating with the business cycle's contraction and expansion phases.