When Interest Rates Increase, Banks Are More Likely to Be

question 23

True/False

When interest rates increase, banks are more likely to be forced to increase rate-sensitive liabilities to replace decreased balances in demand deposits and savings accounts.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, starts to trigger a conditioned response similar to the response to the unconditioned stimulus.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.

Wagner

A reference to theories postulated by Robert A. Rescorla and Allan R. Wagner on conditioning processes, focusing on the associative strength between stimuli and responses.

Unconditioned Response

An automatic, natural response to an unconditioned stimulus that requires no learning.