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First National Bank reports the following items on its balance sheet: cash, $200 million; U.S. government...

First National Bank reports the following items on its balance sheet: cash, $200 million; U.S. government securities, $150 million; residential real-estate loans, $300 million; and corporate loans, $350 million. Its off-balance-sheet items include standby credit letters, $100 million and long-term credit commitments to corporations, $160 million.

(1) What are First National's total risk-weighted assets?

(2) If the bank reports Tier I capital of $30 million and Tier 2 capital of $20 million, does it have a capital deficiency? Show your works.

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