Once the Big Four Solved the Cash-Shortage Problem,the Most Chronic

question 28

Multiple Choice

Once the Big Four solved the cash-shortage problem,the most chronic problem holding back construction was a

• A)shortage of labor.
• B)strike by the combined forces of Chinese and Irish workers as the rails crossed Nevada.
• C)crippling dispute between Stanford and Crocker.
• D)series of bloody attacks by California Indians.

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Definitions:

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Compensating Balance

A minimum bank account balance that a borrower agrees to maintain as a condition for obtaining a loan, often used to offset the bank's credit risk.

Legal Restrictions

Regulations or limitations prescribed by law that affect the actions of individuals, businesses, or governments.

Compensating Balance

A compensating balance is a minimum account balance that a borrower agrees to maintain in an account with a lender as part of a loan agreement.