What is the contribution to the credit riskâadjusted asset base of the following items under the Basel II requirements? Under the U.S. capital-assets ratio?
a. $10 million cash reserves.
b. $50 million 91-day U.S. Treasury bills.
c. $25 million cash items in the process of collection.
d. $5 million U.K. government bonds, AAA rated.
e. $5 million Australian short-term government bonds, A _ rated.
f. $1 million general obligation municipal bonds.
g. $40 million repurchase agreements (against U.S. Treasuries).
h. $500 million one- to four-family home mortgages.
i. $500 million commercial and industrial loans, BBB _ rated.
j. $100,000 performance-related standby letters of credit to an AAA-rated corporation.
k. $100,000 performance-related standby letters of credit to a municipality issuing general obligation bonds.
l. $7 million commercial letter of credit to a foreign, A-rated corporation.
m. $8 million bankers acceptance conveyed to a U.S., AA-rated corporation.
n. $17 million three-year loan commitment to a private agent.
o. $17 million three-month loan commitment to a private agent.
p. $30 million standby letter of credit to back an A-rated corporate issue of commercial paper.
q. $4 million five-year interest rate swap with no current exposure (the counterparty is a private agent).
r. $4 million five-year interest rate swap with no current exposure (the counterparty is a municipality).
s. $6 million two-year currency swap with $500,000 current exposure (the counterparty is a lowâcredit risk entity).
t. $3 million five-year loan commitment to an OECD government.