Suppose a bank has total assets of $3,000,000,000, of which $1,000,000,000 are cash assets and government securities with a "risk weight" of 0% and $2,000,000,000 are loans with a risk weight of 50%. The bank has total deposits and other liabilities of $2,800,000,000. The bank's risk-based capital ratio is

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The risk-weighted assets are $1,000,000,000 * 0% + $2,000,000,000 * 50% = $1,000,000,000. The bank's capital is $3,000,000,000 - $2,800,000,000 = $200,000,000. The risk-based capital ratio is $200,000,000 / $1,000,000,000 = 20%.

Suppose a Bank Has Total Assets of $3,000,000,000, of Which