Use the Following Table to Answer the Question

question 50

Multiple Choice

Use the following table to answer the question :

-If interest rates rise by 5 percentage points,say,from 10 to 15%,bank profits (measured using gap analysis) will

• A)decline by $0.5 million.
• B)decline by $1.5 million.
• C)decline by $2.5 million.
• D)increase by $1.5 million.

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Definitions:

Unconditioned Response

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

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, triggers a conditioned response.

Tone

The general character or attitude of a piece of writing, situation, or speech, or the pitch and strength of a sound.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, elicits a conditioned response.