What is the ratio of real assets to total assets for the bank? (Round your answe

Question

What is the ratio of real assets to total assets for the bank? (Round your answer to 4 decimal places.)

Real assets to total assets ratio =            

b. What is the ratio of financial assets to total assets for the bank ? (Round your answer to 4 decimal places.)

Financial assets to total assets ratio =            

Balance sheet of ABC Bank Liabilities and $Billion $Billion Net Worth $138.01 Liabilities Assets Equipment and premises Other real estate Cash Investment securites Loans and leases Other financial assets Intangible assets Other 34.50 2,104.62 3,536.46 9,229.29 983.31 414.02 810.80 $17,251.00 Deposits Debt and other borrowed funds Federal funds and repurchase agreements Other $13,076.26 $1,017.81 $414.02 $793.55 Net worth $1,949.36 $17,251.00 Total

Explanation / Answer

Solution :

a) Real assets= Equipment and premises+ other real estate

Real assets = $138.01+ $34.50= $172.51

Ratio of real assets to total assets = Real assets/ Total assets

Ratio of real assets to total assets = $172.51/$17251= 0.01

b) Financial assets = cash + investment securities + loans and leases+ other financial assets

Financial Assets = $2104.62+$3536.46+$9229.29+$983.31= $15,853.68

Financial assets to total assets ratio = Financial Assets / Total Assets

Financial Assets to total assets ratio = $15,853.68/$17,251= 0.9190

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