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First National Bank of Wimbley Reports Tier-One Capital of $60

Question 21

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First National Bank of Wimbley reports tier-one capital of $60 million and tier-two capital of $70 million. First National has assets of $10 million with a risk weight of zero, assets of $350 million with a 0.2 risk weight, assets of $680 million with a 0.5 risk weight and assets of $1,010 million with a risk weight of 1.00. What is First National's total risk-weighted assets? Does the bank have enough tier-one capital? Enough total capital? Why or why not?

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First National's total risk weighted ass...

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