Question: Could you please help me with the question which is below? Thank you. Carefully read the following Balance Sheet. Balance Sheet of XYZ Bank Assets.

Could you please help me with the question which is below?

Thank you.

Carefully read the following Balance Sheet.

Balance Sheet of XYZ Bank

Assets. 31/12/2009. %of Assets

Cash. $100,00. %4

Securities. $580,00. %20

Loans. $1.800.00. %64

Other Assets. $350,00. %12

Total Assets. $2.830,00. %100

Liabilities&Equities

Deposits. $1.720,00. %61

Borrowings. $790,00. %28

Shareholder's Equity $320,00. %11

Total Liabilities and

Equity $2.830.00 %100

Assignment : A bank balance sheet is different from a typical company. Explain the differences?

Looking at the percentages, comment on the Assets and Liabilities of the above Balance Sheet. Why do bank managers prefer Loans over Securities? Why is cash only 4%?

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