Question
Examine the balance sheet of commercial banks in the following table. Assets $ Billion % Total Liabilities and Net Worth $ Billion % Total
Examine the balance sheet of commercial banks in the following table. Assets $ Billion % Total Liabilities and Net Worth $ Billion % Total Real assets Equipment and premises $ 161.2 Other real estate 36.9 1.3% 0.3 Liabilities Deposits $10,266.3 85.28 Total real assets $ 198.1 1.6% Debt and other borrowed funds Federal funds and repurchase agreements Other 338.0 2.8 198.0 1.6 334.7 2.8 Total liabilities $11,137.0 92.48 Financial assets Cash Investment securities. Loans and leases $ 868.3 7.28 2,032.1 16.9 6,579.3 54.6 Other financial assets 1,193.2 9.9 Total financial assets $10,672.9 88.5% Other assets Intangible assets. $ Other 412.4 772.7 Total other assets $ 1,185.1 3.4% 6.4 9.88 Net worth Total $12,056.1 100.0% 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, October 2018. 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 $ 919.1 7.68 $12,056.1 100.0%
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