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b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decimal places.)
b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decimal places.) $ Billion % Total $ Billion % Total Assets Real assets Equipment and software Real estate Inventories Total real assets $ 4,322 9,831 1,654 $15,807 16.3 % 37.0 6.2 59.6 % Liabilities and Net Worth Liabilities Bonds and mortgages Bank loans Other loans Trade debt Other Total liabilities $ 5,284 638 1,242 1,642 4,448 $13,254 19.9 % 2.4 4.7 6.2 16.8 49.9% Financial assets Deposits and cash $ 637 Marketable securities 936 Trade and consumer credit 2,202 Other 6,957 Total financial assets $10,732 Total $26,539 2.4 % 3.5 8.3 26.2 40.4 % Net worth 50.1 % $13,285 $26,539 100.0 % 100.0 % Balance sheet of U.S. nonfinancial corporations Note: Column sums may differ from total because of rounding error. Source: Flow of Funds Accounts of the United States, Board of Governors of the Federal Reserve System, March 2016. Ratio for nonfinancial firms Examine the balance sheet of commercial banks in the following table. $ Billion % Total $ Billion Total Assets Real assets Equipment and premises Other real estate $ 111.2 28.9 0.9 % 0.2 $ 10, 261.3 385.0 86.3 % 3.2 Liabilities and Net Worth Liabilities Deposits Debt and other borrowed funds Federal funds and repurchase agreements Other Total liabilities Total real assets $ 140.1 1.2 % 116.0 1.0 314.7 $ 11,077.0 2.6 93.1 Financial assets Cash Investment securities Loans and leases Other financial assets Total financial assets Other assets Intangible assets Other Total other assets Total $ 858.3 2,032.1 6,519.3 1,175.2 $ 10,584.9 7.2 % 17.1 54.8 9.9 89.0 % $ $ 407.4 762.7 $ 1,170.1 $ 11,895.1 3.4 % 6.4 9.8 % 100.0 % Net worth $ 818.1 6.9 % $ 11,895.1 100.0 % Balance sheet of FDIC-insured commercial banks and savings institutions Note: Column sums may differ from total because of rounding error. Source: Federal Deposit Insurance Corporation, www.fdic.gov, March 2016. a. What is the ratio of real assets to total assets? (Round your answer to 4 decimal places.) Ratio of real assets to total assets
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