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The following questions apply to the following simplified bank balance sheet
-Shareholders in the bank above are offered the following deal.The bank will gamble the whole loan book on a double or nothing coin toss (i.e.50% chance loan book doubles in value,50% chance it has zero value) .From the shareholders point of view,this deal
Reinforcement
A principle in behavioral psychology that increases the likelihood of a behavior repeating by applying a consequence, positive or negative, following that behavior.
Contrived Extrinsic Rewards
Incentives that are intentionally created to motivate specific behaviors or outcomes, which might not inherently be rewarding.
Smiles
Are facial expressions that typically signify happiness, pleasure, or amusement, often used as a form of non-verbal communication.
Information Processing
The method by which individuals take in, interpret, store, and retrieve information.
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