Whitehaven Bank is considering changing its asset mix by moving $850 million of commercial loans into Treasury securities. If it does not change its other assets and its capital remains the same, its risk-based capital ratio
A. Will decrease because the earnings rate on Treasuries is less than on loans.
B. Will decrease by 18.67 percent.
C. Will not change because the total assets have not changed.
D. Will increase because the assets will have lower risk.
E. Will change, but the direction cannot be determined with the information given.