The First Webster Bank Requires Borrowers to Maintain a Balance

question 63

Multiple Choice

The First Webster Bank requires borrowers to maintain a balance of 10% of the line of credit in a non-interest paying account as compensation for providing the line of credit. If the borrower would not normally have deposits in such an account,

• A) the amount borrowed will be higher than the amount needed.
• B) the APR will be less than the stated rate.
• C) the amount borrowed will be lower than the amount needed.
• D) neither the amount borrowed nor the APR will be affected by the required balance.

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Definitions:

Counterconditioning

A behavior therapy technique where a maladaptive response to a stimulus is replaced with a more desirable one.

Paradoxical Intentions

A therapeutic technique where clients are advised to intentionally engage in or exaggerate the behaviors or thoughts they wish to eliminate, leading to awareness and change.

Implosion

A psychological therapy technique where a person is intensely exposed to their fears or traumas in their imagination to reduce the related anxiety.

Reactive Inhibition

A psychological process where a previously learned response decreases in strength or frequency due to the repeated presentation of a stimulus, leading to fatigue or boredom.