Suppose the Required Reserve Ratio Is 10

question 125

Multiple Choice

Suppose the required reserve ratio is 10%. If a bank has total reserves of $80,000 and checkable deposits of $550,000, what is the amount of the bank's excess reserves?

• A) $25,000
• B) $55,000
• C) $80,000
• D) $250,000

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Definitions:

Extinction Effect

The gradual weakening and eventual disappearance of a conditioned response over time when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Effective Punishment

A consequence that successfully reduces the likelihood of a behavior being repeated, contingent on the behavior and appropriately administered.

Punishment

A consequence that diminishes the frequency of the behavior it follows, often used in the context of behavior modification.

Aggression

Behavior intended to harm or intimidate others, which can be physical, verbal, or non-verbal.