Examine the balance sheets given in Table 1 3 a What is the ratio of real assets to total assets for commercial banks (Round your answer to 4 decimal places ) Ratio of real to total assets b What is that ratio for nonfinancial firms (Table 1 4) (Round your answer to 4 decimal places ) The ratio for nonfinancial firms TABLE 1 3 Balance sheet of FDIC insured commercial banks and savings institutions $ Billion Total $12,894 7 1,170 9 233 7 611 1 $14,910 4 76 8 7 0 1 4 3 6 88 9 Liabilities and Assets $ Billion Total Net Worth Real assets Liabilities Equipment and premises $ 120 2 0 7 Deposits Other real estate 10 9 0 1 Debt and other borrowed funds Total real assets $ 125 2 0 7 Federal funds and repurchase agreements Other Total liabilities Financial assets Cash $ 1,810 0 10 8 Investment securities 3,559 5 21 2 Loans and leases 9,183 9 54 7 Other financial assets 1,059 2 6 3 Total financial assets $15,612 5 93 0 Other assets Intangible assets $ 350 4 2 1 Other 692 1 4 1 Total other assets $ 1,042 5 7 2 Net worth Total $16,780 2 100 0 $ 1,869 8 11 1 $16 780 2 100 0 Note Column sums may diffe from total because of rounding error Source Federal Deposit Insurance Corporation, www fdic gov, March 2017 TABLE 1 4 Balance sheet of U S nonfinancial corporations Liabilities and Net Worth Assets $ Billion Total $ Billion Total Real assets Equipment and intellectual property Real estate Inventories Total real assets $ 6,936 13,319 2,280 $22,535 16 6 31 9 5 5 54 0 Liabilities Bonds and mortgages Bank loans Other loans Trade debt Other Total liabilities $ 6,299 985 1,140 2,146 7,495 $18,065 15 1 2 4 2 7 5 1 17 9 43 3 Financial assets Deposits and cash Marketable securities Trade and consumer credit Other Total financial assets Total $ 1,070 1,011 2,800 14,344 19,224 $41,759 2 6 2 4 6 7 34 3 46 0 100 0 Net worth $23,694 $41,759 56 7 100 0 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 2017

Question

Examine the balance sheets given in Table 1 3  a  What is the ratio of real assets to total assets for commercial banks  (Round your answer to 4 decimal places ) Ratio of real to total assets b  What is that ratio for nonfinancial firms  (Table 1 4)  (Round your answer to 4 decimal places ) The ratio for nonfinancial firms TABLE 1 3 Balance sheet of FDIC insured commercial banks and savings institutions $ Billion   Total $12,894 7 1,170 9 233 7 611 1 $14,910 4 76 8  7 0 1 4 3 6 88 9  Liabilities and Assets $ Billion   Total Net Worth Real assets Liabilities Equipment and premises $ 120 2 0 7  Deposits Other real estate 10 9 0 1 Debt and other borrowed funds Total real assets $ 125 2 0 7  Federal funds and repurchase agreements Other Total liabilities Financial assets Cash $ 1,810 0 10 8  Investment securities 3,559 5 21 2 Loans and leases 9,183 9 54 7 Other financial assets 1,059 2 6 3 Total financial assets $15,612 5 93 0  Other assets Intangible assets $ 350 4 2 1  Other 692 1 4 1 Total other assets $ 1,042 5 7 2  Net worth Total $16,780 2 100 0  $ 1,869 8 11 1  $16 780 2 100 0  Note  Column sums may diffe from total because of rounding error  Source  Federal Deposit Insurance Corporation, www fdic gov, March 2017  TABLE 1 4 Balance sheet of U S  nonfinancial corporations Liabilities and Net Worth Assets $ Billion   Total $ Billion   Total Real assets Equipment and intellectual property Real estate Inventories Total real assets $ 6,936 13,319 2,280 $22,535 16 6  31 9 5 5 54 0  Liabilities Bonds and mortgages Bank loans Other loans Trade debt Other Total liabilities $ 6,299 985 1,140 2,146 7,495 $18,065 15 1  2 4 2 7 5 1 17 9 43 3  Financial assets Deposits and cash Marketable securities Trade and consumer credit Other Total financial assets Total $ 1,070 1,011 2,800 14,344 19,224 $41,759 2 6  2 4 6 7 34 3 46 0 100 0  Net worth $23,694 $41,759 56 7  100 0  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 2017

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Examine the balance sheets given in Table 1.3. a. What is the ratio of real assets to total assets for commercial banks? (Round your answer

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