(Table) SCENARIO: Assume That the Empathy State Bank Begins with the Balance

question 43

Multiple Choice

(Table) SCENARIO: Assume that the Empathy State Bank begins with the balance sheet below and is fully loaned up. What is the amount of this bank's reserves?

• A) $2,500
• B) $7,500
• C) $10,000
• D) $100,000

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Definitions:

Overconfidence

Overconfidence refers to the phenomenon where an individual's subjective confidence in their judgements is reliably greater than their objective accuracy, especially when confidence is relatively high.

Economic Predictions

Forecasts about future economic conditions based on current and historical data analysis.

Overestimating Knowledge

The tendency to believe one knows more about a subject or topic than one actually does.

Retention of Material

The ability to remember and recall information, skills, or knowledge over time after initial learning has taken place.