Question

8. The following balance sheet accounts (in millions of dollars) have been taken from the annual report for a U.S. bank. Arrange the accounts in balance sheet order and determine the value of total assets. Based on the balance sheet st ruc- ure, would you classify this bank as a community bank, regional bank, or money center bank? Premises Savings deposits Cash NOW accounts Long-term debt Other assets Other time deposits $1,078 3,292 2,660 12,816 1,191 1,633 2,333 Net loans Short-term borrowing Other liabilities Equity Investment securities Demand deposits Certificates of deposit $29,981 2,080 778 3,272 6,092 5,939 (under $100,000) Federal funds sold 9,853 110

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Answer #1

Total Assets = Premises+ Cash + Other assets + Net Loans + Investment securities + Federal funds sold

Total Assets = 1078 + 2660 + 1633 + 29981 + 6092 + 110

Total Assets = $41554 (Millions)

Bank is a small regional bank as its total assets are $41.5 Billion. If this is $41.5 Million then bank will be considered as Community bank.

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