6. The following accounts belong to a bank; Calculate the Tier 1 ratio using risk adjusted assets below. Cash $985,000 Government Securities $ 560,000 Inter bank loans $ 1,420,000 Mortgage Loans $ 1,680,000 Ordinary Loans $ 670,000 Intangible Assets $ 545,000 Loan loss reserve $ 460,000 Trust preferred securities $ 345,000 Owner's capital $ 780,000 Bank Assets Risk Weight Cash and equivalents 0% Government securities 0 Inter bank loans 20 Mortgage Loans 50 Ordinary Loans 100 Standby letters of credit 100 7. A bank has minimum reserves at its Federal Reserve bank of $ 350,000 in vault cash and $ 900,000 in deposits. There are no excess reserves. If the required reserves ratio is 6 % how much does the bank have in total deposits? 8. Using the same information in 5. above except for the required reserve ratio of 6 %, if the bank has deposits of $ 15,500,000 and there are no excess reserves, how much is the required reserve ratio? 9. If a bank has 20 million in deposits, 2 million in vault cash, holds 8 million in excess reserves and the required reserve ratio is 5%, what level of deposits does the bank have? 10. The Chickcharny bank receives a primary deposit of $ 150,000; it must keep reserves of 6 % against deposits. The bank then gives a client a loan of $ 60,000. If a check was written in the amount of $ 45,000 of the derivative deposit and sent to a bank in another city for deposit how would the balance sheet appear? 11. A financial system has a required reserve ratio of 5%, initial excess reserves of $ 90,000 and cash held by the public of $ 8,000. What is the amount of the money supply after deposit expansion? 10. The following are components on the balance sheet of a commercial bank. How much is total Assets? Demand deposit Time deposits Savings deposits Federal funds purchased Common Stock Surplus Undivided profits $ 550,000 $ 250,000 $ 491,000 $ 190,000 $ 940,000 $ 250,000 $ 320,000