DISCUSSION 5 Monetary System 1. "Money makes the barter system unnecessary and enables more trade to happen." Explain this statement with the three functions of money. 2. Alejandro takes $100,000 he had kept in his wallet and deposits it in his bank account. If this $100,000 stays in the banking system as reserves and if banks hold minimum reserves equal to 5 percent of deposits. a. How much does the total amount of deposits in the banking system increase? b. How much does the money supply increase? 3. Under a 100 percent reserve banking system, how much money supply can be stimulated with a deposit of $100,000?4. Under a fractional reserve banking system, how much is the excess reserve given a $35,000 deposit in a commercial bank with a 10% reserve requirement and a loan of $15,000