Suppose You Sell a Kayak for $600, but You Were

question 57

True/False

Suppose you sell a kayak for $600, but you were willing to sell it for $450. The buyer was willing to pay $650. The total surplus is $200.

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Definitions:

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, typically determined by a central bank.

Total Money Supply

The entire stock of currency and other liquid instruments circulating in a country's economy as of a particular time.

Money Supply

The overall accumulation of monetary assets in an economy at a certain point, including cash, coins, and funds in checking and savings accounts.

Reserves

Assets held by a financial institution or an individual as a buffer for potential future liabilities or emergencies.