-The Above Figure Shows the Market for Game Day T-Shirts

question 232

Multiple Choice

-The above figure shows the market for game day t-shirts.If the price of t-shirts is $12,then

• A) there is a shortage and the price of t-shirts will fall.
• B) there is a shortage and the price of t-shirts will rise.
• C) there is a surplus and the price of t-shirts will rise.
• D) there is a surplus and the price of t-shirts will fall.
• E) the market is in equilibrium.

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Definitions:

Checkable Deposits

Funds kept in bank accounts that can readily be withdrawn by writing a check or using a debit card, making them a highly liquid form of money.

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserve and not lend out, in order to ensure bank stability and liquidity.

Excess Reserves

The funds that banks hold over and above the legally mandated minimum to safeguard bank liquidity, which can also be lent out.

Actual Reserves

The funds that a bank has on hand or deposited with the central bank, available for immediate use.