The bank is considering changing its asset mix by moving $100 million of commercial loans into Treasury securities.If it does change the asset mix and capital remains the same,the risk-based capital ratio
A) will not change because the total assets have not changed.
B) will decrease because the earnings rate on Treasuries is less than on loans.
C) will increase by 16.67 percent.
D) will increase because the assets will have less risk.
Correct Answer:
Verified
Q84: Under historical accounting methods for the market
Q85: The FASB set its guidelines to allow
Q86: The U.S.banking industry built up record levels
Q87: Which of the following is not a
Q88: The concept of prompt corrective action refers
Q88: The measurement of credit risk under the
Q90: The Basel II Accord effective at year-end
Q91: The Basel capital requirements differ from previous
Q93: Using a strict market value accounting might
Q94: Bank regulators set minimum capital standards to
A)inhibit
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents