1. A bank balance sheet is different from that of a typical company. Explain the differences.
2. Looking at the percentages, comment on the Assets and Liabilities of the above Balance Sheet. Why do bank managers prefer Loans over Securities? Why is cash only 4%?
3. Describe the difference for at least three of the balance sheet elements
4. Discuss at least 2 of why bank managers prefer loans over securities. Use at least one example each.