Table 11-4. -Refer to Table 11-4. If the Bank Faces a Reserve

question 107

Multiple Choice

Table 11-4.

-Refer to Table 11-4. If the bank faces a reserve requirement of 10 percent, then the bank

• A) is in a position to make a new loan of $10,000.
• B) has fewer reserves than are required.
• C) has excess reserves of $12,500.
• D) None of the above is correct.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has become conditioned through association with an unconditioned stimulus.

Conditioned Stimulus

An originally neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Unconditioned Response

An unconditioned response is an automatic, natural reaction to a stimulus, which does not require prior learning to occur.

Ivan Pavlov

A Russian physiologist known for his work on classical conditioning, demonstrating how organisms learn through association.