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Statement I: Time deposits have different reserve requirements than demand deposits.
Statement II: The deposit expansion multiplier is,in reality,quite a bit lower than it would be if we based it solely on the reserve ratio.
Emotional Reactions
Responses involving feelings that occur in consequence to an internal or external event.
Rational Thinking
The ability to think logically, making decisions and solving problems by applying reason and critical thinking.
Robert Zajonc
A psychologist known for his work on the mere-exposure effect and theories on social and emotional processes.
Lie-Detector Test
A test using a polygraph machine to measure physiological responses that are believed to indicate lying.
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