Volatile Deposits

question 29

Multiple Choice

Volatile deposits:

• A) are the largest source of funds for smaller banks.
• B) equal the difference between actual current deposits and the base estimate of core deposits.
• C) reduce reserve requirements.
• D) are a low cost source of funds.
• E) all of the above

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Definitions:

Habituation

A decrease in responsiveness to a specific stimulus as a result of repeated experience with it.

Sensitization

An increased reactivity to all environmental events following exposure to an intense stimulus.

Behavioral Contrast

A phenomenon in which a change in the reinforcement conditions of one behavior leads to an opposite change in the rate of another behavior.