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Which is risk-based capital ratio

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Reference no: EM132974152

Problem 1: Bank is considering changing its asset mix by moving $500 million of Treasury securities into commercial loans. If it does not change its other assets and its capital remains the same, its risk-based capital ratio

A. will increase because the earnings rate on Treasuries is less than on loans.
B. will decrease by 18.67 percent.
C. will not change because the total assets have not changed.
D. will decrease because the assets will have higher risk.
E. will change, but the direction cannot be determined with the information given.

Reference no: EM132974152

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