The Cash Balance That a Financial Institution Requires Its Customer

question 15

True/False

The cash balance that a financial institution requires its customer to maintain in a non-interest-bearing account to offset a line of credit is a compensating balance.

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Definitions:

Extinction

In behavioral psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is presented without the unconditioned stimulus.

Spontaneous Recovery

A phenomenon in learning where a previously extinguished response reemerges after a period without exposure to the conditioned stimulus.

Bandura's Study

Refers to research conducted by psychologist Albert Bandura, especially known for his work on social learning theory and the concept of self-efficacy.

Aggression

Behavior intended to harm or intimidate others, manifesting physically or verbally.