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What is the capital/asset ratio of each bank? How do these compare to the average for all U.S. banks? Michelangelo Bank: Vermeer Bank: Q. Look

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What is the capital/asset ratio of each bank? How do these compare to the average for all U.S. banks?

Michelangelo Bank: Vermeer Bank:

Q. Look at the balance sheets of the two depository institutions in the spreadsheets below. The Michelangelo Bank of Florence Assets Liabilities and Net Worth Reserves: Fed funds sold: Mortgage Loans: Commercial Loans: Securities: Office buiding: 2,000,000 5,000,000 27,000,000 17,000,000 6,000,000 1,500,000 Demand deposits Time deposits Fed funds bought: Bonds issued: 18,000,000 15,000,000 3,000,000 17,000,000 Capital: 5,500,000 Total 58,500,000 Total 58,500,000 The Vermeer Bank of Delft Liabilities and Net Worth Assets Reserves: Fed funds sold: Mortgage Loans: Commercial Loans: Securities: Office building: 1,900,000 5,000,000 17,000,000 23,000,000 10,000,000 1,600,000 Demand deposits Time deposits Fed funds bought: Bonds issued: 19,000,000 15,000,000 4,300,000 18,000,000 Capital: 2,200,000 Total 58,500,000 Total 58,500,000

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