Refer to the Information Provided in Scenario 25

question 286

Multiple Choice

Refer to the information provided in Scenario 25.2 below to answer the question(s) that follow.
SCENARIO 25.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
-Refer to Scenario 25.2. If the required reserve ratio were changed to 20%, total loans of Bank No. 2 will change to

• A) $64,000.
• B) $72,000.
• C) $74,250.
• D) $80,000.

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Definitions:

Conditioned Stimulus

An initially neutral stimulus which, upon being paired with an unconditioned stimulus, eventually elicits a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a response without prior learning or conditioning.

John Watson

An American psychologist considered one of the founders of behaviorism, emphasizing the importance of observable behaviors over internal phenomena.

Conditioned Response

A learned reaction to a conditioned stimulus that occurs because of previous conditioning.