A Fractional Reserve Banking System Might Be in Trouble If

question 77

Multiple Choice

A fractional reserve banking system might be in trouble if

• A) one depositor wanted his (her)money returned.
• B) one borrowing customer paid off the loan.
• C) all borrowing customers paid off their loans.
• D) all deposit customers wanted to withdraw their money.
• E) None of the above.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Operant Conditioning

A learning process by which the consequences of an action affect the likelihood of its occurrence in the future, central to behavioral psychology.

Imitation

The action of using someone or something as a model and attempting to replicate their behavior, actions, or attributes.

Operant Conditioning

A teaching mechanism in which the intensity of an action is altered through positive reinforcement or negative consequences.