Compensating Balances

question 98

Multiple Choice

Compensating balances:

• A) are used by banks as a substitute for charging service fees.
• B) are created by having a concentration account.
• C) generate returns to customers from interest bearing accounts.
• D) are used to reward new accounts.

---

Definitions:

DRG System

A system used in healthcare to classify hospital cases into groups according to diagnosis, treatment, and length of stay, for the purpose of payment and data analysis.

Labor Costs

The total sum of all wages paid to employees, as well as the costs of employee benefits and payroll taxes incurred by an employer.

Nonlabor Costs

Expenses related to the operations of a business or project that do not include direct costs of labor, such as materials or overhead.

Complication

An unexpected illness or other condition that develops as a result of a procedure, service, or treatment provided during the patient’s hospital stay.