the fed has set the reserve requirement to 10%. assume that big bank inc has $100 million worth of deposits…

the fed has set the reserve requirement to 10%. assume that big bank inc has $100 million worth of deposits by its customers. how much money is available for big bank inc to loan out? $90 million $100 million $110 million $10 million question 13 1 pts which statement best describes moneys function as a unit of account? everyone must purchase goods and services with money, and may not use other payments. moneys rarity gives it value that all people want. all goods and services in the united states are priced with dollars, allowing their values to be compared. money can be exchanged for a fixed amount of gold or silver. question 14 1 pts what problem did the introduction of federal reserve notes help fix with the banking system? they gave the united states a form of paper currency for the first time. they give the united states a single currency as opposed to every bank producing their own currency notes. banks were unable to loan money out to customers before their introduction. money was not easily divisible into smaller denominations until their introduction.

the fed has set the reserve requirement to 10%. assume that big bank inc has $100 million worth of deposits by its customers. how much money is available for big bank inc to loan out? $90 million $100 million $110 million $10 million question 13 1 pts which statement best describes moneys function as a unit of account? everyone must purchase goods and services with money, and may not use other payments. moneys rarity gives it value that all people want. all goods and services in the united states are priced with dollars, allowing their values to be compared. money can be exchanged for a fixed amount of gold or silver. question 14 1 pts what problem did the introduction of federal reserve notes help fix with the banking system? they gave the united states a form of paper currency for the first time. they give the united states a single currency as opposed to every bank producing their own currency notes. banks were unable to loan money out to customers before their introduction. money was not easily divisible into smaller denominations until their introduction.

Answer

Explanation:

Step1: Calculate required reserves

The required - reserve formula is $RR = r\times D$, where $r$ is the reserve - requirement ratio and $D$ is the total deposits. Given $r = 0.1$ and $D=$100$ million, then $RR=0.1\times100$ million $=$10$ million.

Step2: Calculate loanable funds

The amount available for lending ($L$) is the total deposits minus the required reserves, i.e., $L = D - RR$. Substituting the values, $L=100$ million - 10 million $=$90$ million.

Question 13

Brief Explanations:

The function of money as a unit of account means that it provides a common measure of the value of goods and services. In the United States, pricing goods and services in dollars allows for easy comparison of their values.

Answer:

All goods and services in the United States are priced with dollars, allowing their values to be compared.

Question 14

Brief Explanations:

Before the introduction of Federal Reserve Notes, each bank could produce its own currency notes, leading to a lack of a unified currency. Federal Reserve Notes provided the United States with a single currency.

Answer:

They give the United States a single currency as opposed to every bank producing their own currency notes.

Answer:

Question 12: $90$ million Question 13: All goods and services in the United States are priced with dollars, allowing their values to be compared. Question 14: They give the United States a single currency as opposed to every bank producing their own currency notes.