Suppose that a bank has $30 million in asset X, $10 million in asset Y, and $20 million in asset Z. Each asset has a different risk weight. The risk weight for asset X is 30%, the risk weight for asset Y is 60%, and the risk weight for asset Z is 10%. The amount of risk-weighted assets for this bank is ____________ million. Assuming that the bank has to hold capital equal to 8% of its
risk-weighted assets, the bank must hold _____________ million in capital.
A) $17; $13,6
B) $60; $4.8
C) $17; $1.36
D) $66; $5.28
C
Economics
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Indicate whether the statement is true or false
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