Northern Bank: Balance Sheet

question 38

Multiple Choice

Northern Bank: Balance Sheet
Assets Liabilities
Reserves $800 Deposits $10 000
Loans $11 200 Capital $2000
$12 000 $12 000
TABLE 26-6
-Refer to Table 26-6.Assume that Northern Bank's target reserve ratio is 10%.What is its current level of excess reserves?

• A)-$320
• B)-$200
• C)$0
• D)$320
• E)$200

---

Definitions:

Superego

A component of Sigmund Freud's psychoanalytic theory, describing the part of the psyche that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Reinforcement

In behaviorism, the reward or relief that follows a behavior, making it likely that the behavior will occur again.

Punishment

The imposition of a penalty as retribution for an offense or undesirable behavior, often used as a method to discourage such behavior.

Behaviorists

Psychologists who focus on observable behaviors and the ways in which learning environments shape behavior, excluding internal thoughts and feelings from their study.