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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 Liabilities and Net Worth Liabilities Bonds and mortgages Bank loans Other loans Assets $ Billion % Total Real assets Equipment and software Real estate Inventories Total real assets $ 4,332 16.4 % 9,585 36.4 1,6646:3 $5,294 20.1% 653 1,254 1,654 4,468 17. 2.5 4.8 6.3 $15,581 59.2% Trade debt Other Total liabilities $13,323 50.6% Financial assets Deposits and cash Marketable securities Trade and consumer credit Other Total financial assets Total 642 951 2,212 2.4% 3.6 8.4 6,947 26.4 $10,752 40.8% $26,333 100.0% Net worth $13,010 49.4% $26,333 100.0% 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 Assets $Billion %Total Liabilities and Net Worth $Billion %Total Real assets Liabilities Equipment and premises Other real estate 1.0 % 0.2 1.3 % Deposits Debt and other borrowed funds 10,262.3 86.0% 121.2 28.9 150.1 320.0 144.0 318.7 $ 11,045.0 2.7 1.2 2.7 Federal funds and repurchase agreements Other Total real assets Total liabilities 92.6 % Financial assets 7.2 % Cash Investment securities Loans and leases Other financial assets 860.3 2,032.1 6,531.3 1.185.2 $ 10,608.9 17.0 54.7 9.9 Total financial assets 88.9 % 3.4 % 9.8% Other assets Intangible assets Other 408.4 764.7 $ 1,173.1 6.4 Total other assets Net worth 887.1 7.4 % Total $ 11,932.1 106.9% $. 11,932.1 106.9% 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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