Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
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

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