Two weeks ago, you signed an employment contract and accepted the responsibility of a Branch Manager with the First Econ Bank in Dallas, 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)
Calculate the actual dollar amount the First ECON Bank has to place aside to meet legal Reserve Requirements. Please show steps.