A bank has total assets of $3,000,000. Of these assets, $200,000 are cash and $300,000 are Treasury securities. Furthermore, the bank holds municipal revenue bonds of $600,000, residential mortgages of $1,000,000, and consumer and commercial loans of $900,000. The bank has capital of $100,000. This bank's risk-adjusted capital ratio is

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The risk-adjusted capital ratio is calculated as (Capital + 8% of Municipal revenue bonds + 20% of Residential mortgages + 50% of Consumer and commercial loans) / Total assets.= (100,000 + 0.08 * 600,000 + 0.20 * 1,000,000 + 0.50 * 900,000) / 3,000,000= (100,000 + 48,000 + 200,000 + 450,000) / 3,000,000= 798,000 / 3,000,000= 0.266= 26.6%

A Bank Has Total Assets of $3,000,000