Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

$ Billion % Total $ 10, 262.3 320.0 144.0 318.7 $ 11,045.0 Examine the balance sheet of commercial banks in the following table. Assets $

image text in transcribed
image text in transcribed
$ Billion % Total $ 10, 262.3 320.0 144.0 318.7 $ 11,045.0 Examine the balance sheet of commercial banks in the following table. Assets $ Billion % Total Liabilities and Net Worth Real assets Liabilities Equipment and premises $ 121.2 1.0 Deposits Other real estate 28.9 0.2 Debt and other borrowed funds Total real assets $ 150.1 1.3 Federal funds and repurchase agreements Other Total liabilities Financial assets Cash $ 860.3 7.25 Investment securities 2,032.1 17.0 Loans and leases 6,531.3 54.7 Other financial assets 1,185.2 9.9 Total financial assets $ 10,608.9 88.99 Other assets Intangible assets $ 408.4 3.4 Other 764.7 6.4 Total other assets $ 1,173.1 9.89 Net worth Total $ 11,932.1 100.0 86.0 % 2.7 1.2 2.7 92.6 % $ 887.1 $ 11,932.1 7.4 S 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 rool assets to total assets 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.) Assets $ Billion % Total Liabilities and Net Worth $ Billion % Total Real assets Liabilities Equipment and software $ 4,332 16.4 % Bonds and mortgages $ 5,294 20.1 % Real estate 9,585 36.4 Bank loans 653 2.5 Inventories 1,664 6.3 Other loans 1,254 4.8 Total real assets $15,581 59.2 Trade debt 1,654 6.3 Other 4,468 17.0 Total liabilities $13,323 50.6% Financial assets Deposits and cash $ 642 2.4 Marketable securities 951 3.6 Trade and consumer credit 2,212 8.4 Other 6,947 26.4 Total financial assets $19,752 40.8% Net worth $13,010 49.49 Total $26,333 100.0 % $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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance Applications And Theory

Authors: Marcia Cornett, Troy Adair, John Nofsinger

1st Edition

0073382256, 9780073382258

More Books

Students also viewed these Finance questions