A bank has 200 of government bonds (0%), 500 of mortgages (50%) and 750 of other loans (100%). Its RWA is?
A1,450
B1,250
C750
D1,000
Answer & Solution
Correct answer: D. 1,000
Risk-weighted assets are 200 x 0 + 500 x 0.5 + 750 x 1, which is 0 + 250 + 750 = 1,000.
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