Examine the balance sheet of commercial banks in the following table. $ Billion 193.7 48.9 242.6...

 

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Examine the balance sheet of commercial banks in the following table. $ Billion 193.7 48.9 242.6 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 Ratio of real assets to total assets Financial assets Deposits and cash Marketable securities $ $ Trade and consumer credit Other Total financial assets Total $ 890.3 5,032.1 6,711.3 1,215.2 $ 13,848.9 Ratio for nonfinancial firms $ $ $ 423.4 794.7 % Total 1.3 % 8.3 1.6 % 5.8 % 32.9 43.8 7.9 90.5 % 2.8 % 5.2 1,218.1 15,309.6 100.0 % $ Billion % Total $ 4,477 16.3 % 9,925 36.1 1,814 6.6 59.0 % $16,216 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, March 2016. a. What is the ratio of real assets to total assets? (Round your answer to 4 decimal places.) Liabilities and Net Worth Liabilities Deposits Debt and other borrowed funds Federal funds and repurchase agreements Other Total liabilities Net worth $ 717 2.6 % 1,176 4.3. 2,362 8.6 6,992 25.5 $11,247 41.0 % Net worth $27,463 100.0 % b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decimal places.) Assets $ Billion % Total Real assets Liabilities and Net Worth Liabilities Bonds and mortgages Equipment and software 19.8 % $ 5,444 878 Real estate Bank loans 3.2 Inventories Other loans 5.2 Total real assets 6.7 Trade debt Other Total liabilities 1,434 1,834 4,768 $14,358 17.4 52.3 % $ Billion $13,105 47.7 % $27,463 100.0 % $ 10,277.3 990.0 942.0 929.0 $ 13,138.3 % Total 67.1 % 6.5 6.2 6.1 85.8 % 2,171.3 14.2 % $ $ 15,309.6 100.0 % Balance sheet of U.S. nonfinancial corporations 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 2016. Examine the balance sheet of commercial banks in the following table. $ Billion 193.7 48.9 242.6 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 Ratio of real assets to total assets Financial assets Deposits and cash Marketable securities $ $ Trade and consumer credit Other Total financial assets Total $ 890.3 5,032.1 6,711.3 1,215.2 $ 13,848.9 Ratio for nonfinancial firms $ $ $ 423.4 794.7 % Total 1.3 % 8.3 1.6 % 5.8 % 32.9 43.8 7.9 90.5 % 2.8 % 5.2 1,218.1 15,309.6 100.0 % $ Billion % Total $ 4,477 16.3 % 9,925 36.1 1,814 6.6 59.0 % $16,216 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, March 2016. a. What is the ratio of real assets to total assets? (Round your answer to 4 decimal places.) Liabilities and Net Worth Liabilities Deposits Debt and other borrowed funds Federal funds and repurchase agreements Other Total liabilities Net worth $ 717 2.6 % 1,176 4.3. 2,362 8.6 6,992 25.5 $11,247 41.0 % Net worth $27,463 100.0 % b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decimal places.) Assets $ Billion % Total Real assets Liabilities and Net Worth Liabilities Bonds and mortgages Equipment and software 19.8 % $ 5,444 878 Real estate Bank loans 3.2 Inventories Other loans 5.2 Total real assets 6.7 Trade debt Other Total liabilities 1,434 1,834 4,768 $14,358 17.4 52.3 % $ Billion $13,105 47.7 % $27,463 100.0 % $ 10,277.3 990.0 942.0 929.0 $ 13,138.3 % Total 67.1 % 6.5 6.2 6.1 85.8 % 2,171.3 14.2 % $ $ 15,309.6 100.0 % Balance sheet of U.S. nonfinancial corporations 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 2016.

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