Assume the Trusty Bank's Balance Sheet Is as Follows

question 83

Multiple Choice

Assume the Trusty Bank's balance sheet is as follows:

-Refer to the information above to answer this question.If the bank's target reserve ratio is 10%,which of the following is correct?

• A)The bank's reserves are in equilibrium.
• B)There are excess reserves of $9,000.
• C)The bank is under-reserved by $9,000.
• D)There are excess reserves of $3,500.

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Definitions:

Reciprocal Determinism

A theory which posits that a person's behavior is influenced by both their own characteristics and the environment, in a mutually influencing relationship.

Operant Conditioning

A form of behavioral conditioning that adjusts the level of a behavior through the addition of positive stimuli or negative consequences.

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.

Reinforcement

In behavioral psychology, an event that strengthens or increases the likelihood of a behavior by providing a consequence an individual finds rewarding.