Examine the balance sheet of commercial banks in Table. What is the ratio of real assets to total assets? What is that ratio for nonfinancial firms (Table)? Why should this difference beexpected?

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Assets S Billion % Total Liabilities and Networth SBillion %Total Real assets Liabilities Equipment and premises Other real estate $ 111.2 28.9 140.1 0.9% Deposits Debt and other borrowed funds $8,077.2 67.9% 1,469.7 12.4 Total real assets 1.2% Federal funds and repurchase agreements Other 758.1 314.7 $10,619.8 Total liabilities 89.3% Financial assets Cash Investment securities Loans and leases Other financial assets 858.3 7.2% 2,032.1 17.1 6,519.3 54.8 1,175.2 Total financial assets $10,584.9 89.0% Other assets Intangible assets Other Total other assets 407.4 762.7 $1,170.1 $11,895.1 3.4% 9.8% Net worth $1,275.3 10.7% $11,895.1 100.0% Total 100.0% Assets $ Billion % Total Liabilities and Networth $ Billion % Total Real assets Liabilities Equipment and software Real estate Inventories 4,322 6,562 1,654 $12,538 16.3% 24.7 Bonds and mortgages Bank loans Other loans Trade debt Other $ 5,284 638 1,347 1,642 4,448 $13,359 19.9% 6.2 472% Total real assets 6.2 16.7 50.3% Total liabilities Financial assets Deposits and cash Marketable securities Trade and consumer credit Other S 637 936 2,202 10,259 $14,034 $26,572 2 A% 8.3 38.6 52.8% 100.0% Total financial assets Net worth $13,214 $26,572 Total 49.7% 100.0%