Calculate the actual dollar amount the first econ bank

Assignment Help Financial Management

Reference no: EM13803354

Two weeks ago, you signed an employment contract and accepted the responsibility of a Branch Manager with the First Econ Bank in Arlington, TX.

On your first day of job, at the close of the business day (May 2nd, 2015) after a closer examination of the bank’s books, you determined that the First ECON Bank had:

$100M in Bank’s Equity

$100M in Borrowed Funds

$100M in Demand Deposits

$100M in NOW Deposits

$100M in Money Market Deposits

$100M in Savings Deposits

$100M in Time Deposits

And $16.8M in Automatic Transfer Savings (ATS) Deposits (overdraft protection)

Please calculate the actual dollar amount the First ECON Bank has to place aside to meet legal Reserve Requirements.

Note, you must show all the steps and thoroughly explain your calculations to receive the full credit.

Reference no: EM13803354

Questions Cloud

Capital gains associated with disposal of the equipment : Equipment costing $20,000 that is a MACRS 3-year property is disposed of during the second year for $12,000. Calculate any depreciation recapture, ordinary losses, or capital gains associated with disposal of the equipment.

What is the depletion allowance : American Pulp Corp. (APC) has entered into a contract to harvest timber for $450,000. The total estimated available harvest is 150 million board-feet. What is the depletion allowance for years 1 to 3, if 42,45, and 35 million board-feet are harvested..

Compute the modified accelerated cost recovery system : On July 1, Nancy paid $600,000 for a commercial building and an additional $150,000 for the land on which it stands. Four years later, also on July 1, she sold the property for $850,000. Compute the modified accelerated cost recovery system depreciat..

Transaction deposits and investment securities : As of today, the First ECON Bank of Austin currently holds: If we assume that that entire amount of the transaction deposits is a subject to the legal 10% reserve requirement, please indicate the required course of the bank’s action to manage its liq..

Calculate the actual dollar amount the first econ bank : Two weeks ago, you signed an employment contract and accepted the responsibility of a Branch Manager with the First Econ Bank in Arlington, TX. On your first day of job, at the close of the business day (May 2nd, 2015) after a closer examination of t..

Marginal-average tax rate paid for firm with taxable income : What is the (1) marginal and (2) average tax rate paid for a firm with taxable income of a). $25,000? b). $85,000? c). $250,000? d). $12 million? e). $200 million?

Compute the annual depletion on a coast basis : If Hillsborough Architecture and Engineering purchases a new office building in May for $5.7M, determine the allowable depreciation for each year. Western Carolina Coal Co. expects to produce 125,000 tons of coal annually for 15 years. The deposit co..

What is the equipment trust certificate : When the debt is paid off, the equipment becomes the property of the issuer, as the title is transferred to the company. What is the equipment trust certificate?

What is the future value-simple rate of interest : What is the future value of $12 deposited today in 5 years when earning 6% simple rate of interest?

User Account

All Pages