When Banks Use Stored Liquidity Management, They

question 40

Multiple Choice

When banks use stored liquidity management, they

• A)must pay interest on the funds that are stored.
• B)store the funds at the U.S.Treasury.
• C)necessarily increase the asset side of the balance sheet.
• D)may shrink the balance sheet if cash is used as the liquidity adjustment mechanism.
• E)threaten the capital position of the institution.

Understand the role and importance of the ozone layer in protecting living organisms.

Recognize the effects of global climate change beyond rising sea levels.

Describe the major effects of deforestation on ecosystems and the environment.

Understand the environmental impact of extracting and using nonrenewable resources for electronics.

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Definitions:

Conditioned Response

A learned reaction to a previously neutral stimulus due to repeated association with an unconditioned stimulus.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without prior conditioning.

Rescorla-Wagner

A model proposing that the strength of a conditioned response depends on the unexpectedness of the unconditioned stimulus.

Comparator Theory

The theory that the ability of a particular stimulus to elicit a conditioned response (CR) depends upon a comparison of the level of conditioning to that stimulus and to other stimuli paired with the unconditioned stimulus (UCS).