Macroeconomics 10th Edition by Roger Arnold

Exercise 22

A bank has $400 in asset X, $500 in asset Y,and $300 in asset Z. Each asset has a different risk weight. Asset X has a risk weight of 10 percent, Yhas a risk weight of 40 percent, and Z has a risk weight of 70 percent. What dollar amount do risk-weighted assets equal? Assuming that the bank has to hold capital equal to 7 percent of its risk-weighted assets, how much capital does the bank have to hold?