Financial Risk Manager Part 2
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Michel, The treasurer of First National Bank wants to determine its legal reserve requirement. So he lists the related data as below:
| Millions of dollar | |
|---|---|
| Net transaction deposits | $75.0 |
| Nonpersonal time deposits (<1.5 years) | $100.0 |
| Eurocurrency liabilities | $15.0 |
| Daily average balance in vault cash | $5.0 |
| Reserve requirements: | |
| Net transaction accounts | |
| • Exemption amount to reserve tranche | 6.0% |
| • More than reserve tranche | 16.0% |
| Reserve tranche | $50.0 |
| Exemption amount | $10.0 |
| Nonpersonal deposits | |
| • Less than 18 months | 4.0% |
| • 18 months or more | 0.0% |
| Eurocurrency liabilities – all types | 4.0% |
What is the legal reserve requirement of the bank (millions of dollar)?