In the Simple Deposit Expansion Model,if the Banking System Has

question 173

Multiple Choice

In the simple deposit expansion model,if the banking system has excess reserves of $75,and the required reserve ratio is 20%,the potential expansion of checkable deposits is

• A)$75.
• B)$750.
• C)$37.50.
• D)$375.

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Definitions:

Omission Training

A method in behavioral psychology where a desirable outcome is removed following unwanted behavior, as a form of negative punishment.

Extinction

In behavioral psychology, the gradual decrease and eventual disappearance of a conditioned response when it is no longer reinforced.

Negative Reinforcement

A learning process where the removal of an unpleasant stimulus strengthens a behavior.

Long-Lasting Suppression

The prolonged inhibition or reduction of a response or activity.