A System in Which Depository Institutions Hold Reserves That Are

question 72

Multiple Choice

A system in which depository institutions hold reserves that are less than the amount of total deposits is

• A) a fractional reserve banking system.
• B) a percentage reserve banking system.
• C) a ratio reserve banking system.
• D) a legal reserve banking system.

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Definitions:

Type A Personality

The ‘coronary-prone’ personality – a behavioural correlate of heart disease characterized by striving to achieve, time urgency, competitiveness, and hostility.

Aggression

Actions aimed at causing physical or mental damage to another person.

Frustration-Aggression Hypothesis

A psychological theory proposing that aggression is often a result of frustration caused by blocked goals.

Excitation-Transfer Model

The expression of aggression is a function of learnt behaviour, some excitation from another source, and the person’s interpretation of the arousal state.