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:

Acres

A unit of area used primarily in the English-speaking world, representing 43,560 square feet or about 4046.86 square meters.

Single-Tax Movement

A political and economic movement that advocates for a single tax, often on land, to replace all other taxes, based on principles advocated by Henry George.

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off.

Private Ownership

The legal right held by individuals or corporations to have exclusive control over and use of property, assets, or commodities.