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Examine the balance sheet of commercial banks in the following table. Assets $ Billion % Total Liabilities and Net Worth $ Billion % Total Real
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 | $ | 121.3 | 0.9 | % | Deposits | $ | 10,260.3 | 73.7 | % | |||
Other real estate | 44.8 | 0.3 | Debt and other borrowed funds | 743.5 | 5.3 | |||||||
Federal funds and repurchase agreements | 478.8 | 3.4 | ||||||||||
Total real assets | $ | 166.1 | 1.2 | % | Other | 855.8 | 6.1 | |||||
Total liabilities | $ | 12,338.4 | 88.6 | % | ||||||||
Financial assets | ||||||||||||
Cash | $ | 1,335.9 | 9.6 | % | ||||||||
Investment securities | 2,930.6 | 21.0 | ||||||||||
Loans and leases | 7,227.7 | 51.9 | ||||||||||
Other financial assets | 1,161.5 | 8.3 | ||||||||||
Total financial assets | $ | 12,655.7 | 90.9 | % | ||||||||
Other assets | ||||||||||||
Intangible assets | $ | 371.4 | 2.7 | % | ||||||||
Other | 732.8 | 5.3 | ||||||||||
Total other assets | $ | 1,104.2 | 7.9 | % | Net worth | $ | 1,587.6 | 11.4 | % | |||
Total | $ | 13,926.0 | 100.0 | % | $ | 13,926.0 | 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, July 2012. |
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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