a. What is the ratio of real assets to total assets? (Round your answer to 4 decimal places.) b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decmal places.)
a. What is the ratio of real assets to total assets? (Round your answer to 4 decimal places.) b. What is the ratio of real assets to total assets for nonfinancial firms in the following table? (Round your answer to 4 decmal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question

Transcribed Image Text:Other assets
Intangible
assets
423.4
28 %
Other
794.7
5.2
Total other
1,218.1
8.0 96
14.2 9%
Net worth
2,171.3
assets
Total
S 15,309.6
100.0 | 9%
$ 15,309.6
100.0 9%
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.)
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.)

Transcribed Image Text:Examine the balance sheet of commercial banks in the following table.
Liabilities and Net
Assets
S Billion
96 Total
$ Billion
9% Total
Worth
Real assets
Liabilities
Equipment and
premises
193.7
13 9%
Deposits
s 10,277.3
67.1 96
Other real
Debt and other
48.9
0.3
990.0
6.5
estate
borrowed funds
Federal funds and
Total real assets
2426
16 | %
repurchase
agreements
942.0
6.2
Other
929.0
6.1
Total liabilities
$| 13,138.3
85.8 9%
Financial assets
Cash
890.3
5.8 %
Investment
5,032.1
32.9
securities
Loans and
6,711.3
43.8
leases
Other financial
1,215.2
7.9
assets
Total financial
S 13,848.9
90.5 9%
assets
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you

Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,

Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education