Discussion
The ratio of shareholders funds to the total assets measures that shifts in the ratio of owned funds to total funds is ........................ .
Answer: A
The keyed answer is the Economic equity ratio.
In the analysis of bank balance sheets, the economic equity ratio is shareholders' funds divided by total assets. It measures the share of the bank's assets financed by its owners, and changes in it show shifts in the proportion of owned funds to total funds.
The other names do not fit the definition. A liquidity ratio compares liquid assets with short-term liabilities, and 'fund based ratio' and 'total asset ratio' are not the names of this measure.
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