Would It Be Worth It to Incur a Compensating Balance

question 105

Multiple Choice

Would it be worth it to incur a compensating balance of $9,000 in order to get a 0.70 percent lower interest rate on a 1-year, pure discount loan of $250,000?

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

---

Definitions:

Welcome Phrase

A greeting or message presented to users, often seen when starting an application or entering a website.

HTML Page

A document commonly used on the web, written in HyperText Markup Language, that defines the structure and presentation of web content.

Class File

A file generated by the Java compiler that contains bytecode executable by the Java Virtual Machine.