1. A bank maintains an average clearing balance of $1,000,000 with the Federal Reserve. The Federal funds rate is currently 4.5 percent. What amount of credit will the bank earn over the reserve maintenance period that can be used to offset any fees charged by the Federal Reserve?

A. $17,500

B. $1,750

C. $45,000

D. $12,500

E. None of the options is correct

2. A bank has $200 million in assets in the 0 percent risk-weight category. It has $400 million in assets in the 20 percent risk-weight category. It has $1,000 million in assets in the 50 percent risk-weight category and has $1,000 million in assets in the 100 percent risk-weight category. This bank has $96 million in Tier 1 capital and $48 million in Tier 2 capital. What is this bank's ratio of Tier 1 capital to risk assets?  

A. 6.08 percent

B. 3.04 percent

C. 9.11 percent

D. 5.54 percent

E. None of the options is correct.