Question
Carefully read the following Balance Sheet. Balance Sheet of XYZ Bank Assets. 31/12/2009. %of Assets Cash. $100,00. %4 Securities. $580,00. 20% Loans. $1.800.00. 64% Other
Carefully read the following Balance Sheet. Balance Sheet of XYZ Bank Assets. 31/12/2009. %of Assets Cash. $100,00. %4 Securities. $580,00. 20% Loans. $1.800.00. 64% Other Assets. $350,00. 12% Total Assets. $2.830,00. 100% Liabilities. Blank. Blank Deposits. $1.720,00. 61% Borrowings. $790,00. 28% Shareholder's Equity $320,00. 11% Total Liabilities and Equity $2.830.00 100% Assignment : A bank balance sheet is different from a typical company. Explain the differences? 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%?
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