a) What are the differences between real and financial assets? Explain in brief. b) How does...

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a) What are the differences between real and financial assets? Explain in brief. b) How does investment banking differ from commercial banking? Discuss it. c) Critically evaluate how the financial statement of both corporations and commercial banks differ from each other from the below financial statement [Table-1.3 and 1.4.] TABLE 1.3 Assets Real assets Equipment and premises Other real estate Total real assets Financial assets Cash Investment securities Loans and leases Other financial assets Total financial assets Other assets Intangible assets Other Total other assets Total Balance sheet of commercial banks, 2011 Liabilities and Net Worth $ Billion % Total $ 110.4 46.6 $ 157.0 $ 1,066.3 2,406.1 6,279.1 1,153.9 $10,905.4 $ 373.9 721.0 1,094.9 $12,157.3 0.9% 0.4 1.3% 8.8% 19.8 51.6 9.5 89.7% Note Colume nie ma differ fr n total because of sounding ar 3.1% 5.9 9.0 100.0% Liabilities Deposits Debt and other borrowed funds Federal funds and repurchase agreements Other Total liabilities Net worth Billion % Total $ 8,674.6 1,291.8 499.1 308.4 $10,773.9 71.4% 10.6 4.1 2.5 88.6% 1,383.4 11.4 $12,157.3 100.0% TABLE 1.4 Assets Real assets Equipment and software Real estate Inventories Total real assets Financial assets Deposits and cash Marketable securities Trade and consumer credit Other Total financial assets Total Balance sheet of U.S. nonfinancial corporations, 2011 Liabilities and Net Worth s Billion $ 4,109 7,676 1,876 $13,661 $ 1,009 899 2,388 10,239 14,535 $28,196 % Total 14.6% 27.2 6.7 48.5% 3.6% 3.2 8.5 36.3 51.5 100.0% Liabilities Bonds and mortgages Bank loans Other loans Trade debt Other Total liabilities Net worth $ Billion $ 5,321 538 1,227 1,863 4,559 $13,509 14,687 $28,196 % Total 18.9% 1.9 4.4 6.6 16.2 47.9% 52.1 100.0% a) What are the differences between real and financial assets? Explain in brief. b) How does investment banking differ from commercial banking? Discuss it. c) Critically evaluate how the financial statement of both corporations and commercial banks differ from each other from the below financial statement [Table-1.3 and 1.4.] TABLE 1.3 Assets Real assets Equipment and premises Other real estate Total real assets Financial assets Cash Investment securities Loans and leases Other financial assets Total financial assets Other assets Intangible assets Other Total other assets Total Balance sheet of commercial banks, 2011 Liabilities and Net Worth $ Billion % Total $ 110.4 46.6 $ 157.0 $ 1,066.3 2,406.1 6,279.1 1,153.9 $10,905.4 $ 373.9 721.0 1,094.9 $12,157.3 0.9% 0.4 1.3% 8.8% 19.8 51.6 9.5 89.7% Note Colume nie ma differ fr n total because of sounding ar 3.1% 5.9 9.0 100.0% Liabilities Deposits Debt and other borrowed funds Federal funds and repurchase agreements Other Total liabilities Net worth Billion % Total $ 8,674.6 1,291.8 499.1 308.4 $10,773.9 71.4% 10.6 4.1 2.5 88.6% 1,383.4 11.4 $12,157.3 100.0% TABLE 1.4 Assets Real assets Equipment and software Real estate Inventories Total real assets Financial assets Deposits and cash Marketable securities Trade and consumer credit Other Total financial assets Total Balance sheet of U.S. nonfinancial corporations, 2011 Liabilities and Net Worth s Billion $ 4,109 7,676 1,876 $13,661 $ 1,009 899 2,388 10,239 14,535 $28,196 % Total 14.6% 27.2 6.7 48.5% 3.6% 3.2 8.5 36.3 51.5 100.0% Liabilities Bonds and mortgages Bank loans Other loans Trade debt Other Total liabilities Net worth $ Billion $ 5,321 538 1,227 1,863 4,559 $13,509 14,687 $28,196 % Total 18.9% 1.9 4.4 6.6 16.2 47.9% 52.1 100.0%

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a Differences between real and financial assets Real assets Real assets represent tangible assets such as land buildings machinery and equipment They ... View the full answer