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jeka94
3 years ago
10

Compensating balances

Business
1 answer:
Airida [17]3 years ago
8 0

Answer:

The correct answer is D

Explanation:

Compensating balance is the balance which is to be minimum amount that is to maintained or kept in the bank account, so that could be used to offset the cost incurred by the bank for setting up the loan.

It is that balance which is not available for the company to use and might be needed to disclose in the notes of the borrower in the financial statements.

So, it is a specific kind of collateral, allow bank to monitor payment practice of firms and require to have a minimum amount that borrower need to keep in the checking account.

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a way to get a large amout of money (legally) to pay off the debt

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an alternative to stocks, but school never taught you what stocks are, so now get more money to buy a phone so u can have basic knowlede

and illegal alternative is to sell something adictive like drugs, cigs. or start a casino or scam pp, for money, or rob a bank

7 0
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2 years ago
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Answer:

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Explanation:

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