Question

Note: The residential mortgages all have a loan-to-value of between 60 and 80 percent.

If the bank has capital of $50 million, what is the leverage ratio using the standardized approach?

A. 5.00 percent.

B. 8.33 percent.

C. 25.0 percent.

D. 50.0 percent.

E. None of the above.

Answer

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