Would It Be Worth It to Incur a Compensating Balance

question 104

Multiple Choice

Would it be worth it to incur a compensating balance of $15,000 in order to get a 2-percent-lower interest rate on a 1-year, pure discount loan of $1,000,000?

• A) Yes
• B) No
• C) Not enough information is given to determine

---

Definitions:

Presidential Election

A formal decision-making process by which a country's electorate selects the President, the head of the executive branch of government.

Endorsed

Officially supported or recommended by a recognized authority or institution.

Niche Journalism

Journalism that targets specific segments of the media market, focusing on a particular interest, topic, or demographic.

Demographic

Statistical data relating to the population and particular groups within it, used especially to identify consumer markets.