According to Arousal Theory,which of the Following Statements Is FALSE

question 29

Multiple Choice

According to arousal theory,which of the following statements is FALSE?

• A) An individual becomes uncomfortable when arousal is too low or too high.
• B) The right mix of activities prevents boredom and overstimulation.
• C) The arousal theory explains the activation of our learned needs for achievement and power.
• D) Most adults vary their activities to keep arousal at a comfortable level of activation.

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Definitions:

Reserve Requirements

The minimum amount of funds that a bank is required to hold in reserve, determined by central banking authorities, to ensure that the institution remains liquid.

Monetary Control

Monetary Control involves the regulation of the money supply and interest rates by central banks to manage economic stability and growth.

Open Market Operations

The buying and selling of government securities by a central bank in order to control the money supply and influence interest rates.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, central bank, or other governing body.