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  3. a bank owns $20 million of treasury bonds with a r

A bank owns $20 million of Treasury bonds with a risk- weighting of...

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Question

Accounting

A bank owns $20 million of Treasury bonds with a risk-
weighting of 0%,$50 million of residential mortgages
with a risk-weighting of 50%, and $30 million of
commercial mortgages with a risk-weighting of 100%.
The bank's risk-weighted assets are currently
and it can improve its capital ratios by allocating a
greater portion of its portfolio
Treasury
bonds.
$100 million; towards
$100 million; away from
$55 million; away from
$55 million; towards
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