$\begin{array}{c}
\begin{array}{lll}
\text {Cash and Treasury securities}\
\text {Fed Funds Sold}\
\text {Residential Mortgages 1-4 family}\
\text {Commercial Loans}
\end{array}
\begin{array}{lll}
\text { \$ 100 million}\
\text {\$ 100 million}\
\text { \$ 200 million}\
\text {\$ 600 million}
\end{array}
\end{array}$
Note: The residential mortgages all have a loan-to-value of between 60 and 80 percent.
-What is the amount of risk-adjusted assets?

Question

$\begin{array}{c}
\begin{array}{lll}
 \text {Cash and Treasury securities}\
 \text {Fed Funds Sold}\
 \text {Residential Mortgages 1-4 family}\
 \text {Commercial Loans}
\end{array}
\begin{array}{lll}
 \text { \$ 100 million}\
  \text {\$ 100 million}\
 \text { \$ 200  million}\
 \text {\$ 600  million}
\end{array}
\end{array}$
 Note: The residential mortgages all have a loan-to-value of between 60 and 80 percent.
-What is the amount of risk-adjusted assets?

Quizplus · Accepted Answer

The risk-adjusted assets are calculated as follows:Cash and Treasury securities: $100 millionFed Funds Sold: $100 millionResidential Mortgages 1-4 family: $200 million x 70% = $140 millionCommercial Loans: $600 millionTotal risk-adjusted assets: $100 million + $100 million + $140 million + $600 million = $940 million.

Note: the Residential Mortgages All Have a Loan-To-Value of Between