Go to the St. Louis Federal Reserve FRED database, and find data for all commercial banks on total liabilities (TLBACBM027SBOG), total deposits (DPSACBM027SBOG), and residual of assets less liabilities (RALACBM027SBOG).

a. What is the balance sheet interpretation of the residual of assets less liabilities?

b. For the most recent month of data available, use the three indicators listed above to calculate the total amount of borrowings by banks.

The balance sheet interpretation of the residual of assets fewer liabilities.

The remaining, if any, of assets fewer liabilities is only the bank capital. In common terms, it is portrayed as the proprietor's value or the total assets of the bank. It is raised by raising new value from held profit. Assuming this remaining turns negative, or the bank has liabilities in the abundance of assets, it might turn indebted.

The information recommends how much bank capital (for every business bank) has expanded from $\$458$billion in January$2000$to $\$1658$in September$2015$.

Given the most recent month of data and the three indicators listed .

From the three-pointers, in particular, absolute liabilities, the bank capital, and complete stores (the two sorts) register the aggregate sum of borrowings as:
$Totalborrowings=Liabilities-(Residual+Totaldeposits)$

Information for September 2015 demonstrates the accompanying upsides of the three-pointers:

$Totalborrowings=Liabilities-(Residual+Totaldeposits)$

$=\mathrm{\$}13,639\mathrm{b}-(\mathrm{S}1,658\mathrm{b}+10,838\mathrm{b})$

$=\mathrm{\$}1,195b$

Hence, complete borrowings for September $2015$ are$\$1,195$ billion for generally business banks.