Examine the balance sheet of commercial banks in the following table. $ Billion % Total Assets...

  

 

Transcribed Image Text:

Examine the balance sheet of commercial banks in the following table. $ Billion % Total Assets Real assets Liabilities Equipment and premises $ 173.7 1.1% Deposits Other real estate 38.9 0.3 Total real assets $ 212.6 1.4% Liabilities and Net Worth $ Billion % Total $10,275.3 Debt and other borrowed funds Federal funds and repurchase agreements Other 907.0 67.4% 6.0 978.0 6.4 978.0 6.4 Total liabilities $13,138.3 86.2% Financial assets. Cash Investment securities Loans and leases $ 886.3 5.8% 5,032.1 33.0 6,687.3 43.9 Other financial assets 1,211.2 7.9 Total financial assets $13,816.9 90.7% Other assets Other Intangible assets. $ 421.4 790.7 Total other assets Total $ 1,212.1 $15,241.6 2.8% 5.2 8.0% 100.0% Net worth $ 2,103.3 $15,241.6 100.0% 13.8% 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.) Examine the balance sheet of commercial banks in the following table. $ Billion % Total Assets Real assets Liabilities Equipment and premises $ 173.7 1.1% Deposits Other real estate 38.9 0.3 Total real assets $ 212.6 1.4% Liabilities and Net Worth $ Billion % Total $10,275.3 Debt and other borrowed funds Federal funds and repurchase agreements Other 907.0 67.4% 6.0 978.0 6.4 978.0 6.4 Total liabilities $13,138.3 86.2% Financial assets. Cash Investment securities Loans and leases $ 886.3 5.8% 5,032.1 33.0 6,687.3 43.9 Other financial assets 1,211.2 7.9 Total financial assets $13,816.9 90.7% Other assets Other Intangible assets. $ 421.4 790.7 Total other assets Total $ 1,212.1 $15,241.6 2.8% 5.2 8.0% 100.0% Net worth $ 2,103.3 $15,241.6 100.0% 13.8% 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.)

Answer rating: 100% (QA)

The ratio of real assets to total assets is calculated by ... View the full answer