1. Table 1 shows the consolidated balance sheet of Barclays PLC as at 31 December 2019. Use the table to answer (a) and (b) and show your workings clearly. Table 1: The consolidated balance sheet of Barclays PLC in 2019 Liabilities (million) 125,940 Deposits 213,881 Assets (million) Cash and reserve balances at the central bank Cash collateral and settlement balances 79,486 67,682 Cash collateral and settlement balances Wholesale repo borrowing secured with collateral other similar secured borrowing Wholesale reverse repo lending and other secured lending 1,731 2,032 Loans and advances at amortised cost 141,636 Unsecured borrowing 66,961 Fixed assets 35,212 1,631 Trading portfolio liabilities 113,337 Derivative financial instruments Trading portfolio assets 228,940 211,349 Derivative financial instruments Other assets 229,641 Other liabilities 183,270 Total assets 876,672 Total liabilities 826,057 Net worth Equity 50,615 (a) i. Calculate the bank's loan to deposit ratio and interpret your results. [5 marks] ii. If the bank's return on equity for its shareholders was nine percent in 2019, calculate the bank's return on assets in 2019 and interpret your results. [6 marks] (b) Explain the difference between a bank having a liquidity problem and a solvency problem. If Barclays PLC was to experience either of the two problems, explain how each would affect its balance sheet? [8 marks]