If It Looks as If a Bank Won't Meet Its

question 84

Multiple Choice

If it looks as if a bank won't meet its target reserve requirement,normally it will first turn to the:

• A) other member banks and borrow money at the overnight rate.
• B) Bank of Canada and borrow money at the bank rate.
• C) open market and borrow money there.
• D) Federal Reserve in the United States to borrow funds.

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Definitions:

Superstitious Behavior

Actions or practices based on the belief in supernatural causality, where specific activities are thought to influence outcomes, despite the absence of a logical cause-and-effect relationship.

Persistent Behavior

A continuous, repeated pattern of actions or tendencies that are exhibited over time, often resisting change.

Token Economy

A form of behavior modification based on the systematic reinforcement of target behavior, through the use of tokens that can be exchanged for other rewards.

Fixed-Ratio Schedule

A reinforcement schedule in operant conditioning where a response is reinforced only after a specified number of responses have occurred.