Suppose a Credit Union Has Checkable Deposits of $500,000 and the Legal

question 42

Multiple Choice

Suppose a credit union has checkable deposits of $500,000 and the legal reserve ratio is 10 percent. If the institution has excess reserves of $4,000, then its actual reserves are

• A) $46,000.
• B) $50,000.
• C) $54,000.
• D) $4,000.

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Definitions:

Mowrer's Two-process Theory

A psychological theory proposing that avoidance learning is a combination of classical conditioning and operant conditioning.

Operant Avoidance Learning

A learning process in which the subject acquires a behavior to prevent or avoid an unpleasant stimulus.

Discriminative Stimulus

A stimulus in the environment that signals the availability of reinforcement or punishment, guiding behavior accordingly.

Negative Reinforcement

A behavior modification technique that involves the removal of an unpleasant stimulus after a desired behavior is exhibited, making the behavior more likely to happen in the future.