If a Depositor in First Bank Takes a Check Written

question 21

True/False

If a depositor in First Bank takes a check written on Valley Bank to First Bank to deposit, it will not normally be credited to his account until collected from the payor bank.

---

Definitions:

Producer Surplus

The difference between what producers are willing to sell a good for and the actual market price of the good.

Deadweight Loss

Deadweight loss refers to the loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable, often due to market distortion such as taxes or subsidies.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.

Marginal Cost

The elevated cost of producing an additional unit of a product or service.