What Must the Rate Be Less Than to Be Worth

question 10

Multiple Choice

What must the rate be less than to be worth it to incur a compensating balance of $20,000 in order to get a 2 percent lower interest rate on a one-year, pure discount loan of $200,000?

• A) The rate must be less than 78 percent.
• B) The rate must be greater than 78 percent.
• C) The rate must be greater than −78 percent.
• D) The rate must be less than −78 percent.

---

Definitions:

Child Protective Services

Government agencies tasked with responding to reports of child abuse or neglect and providing services to protect and support affected children.

Confidentiality

The principle of keeping certain information private and not disclosing it without the consent of the person it pertains to.

Physical Needs

Basic requirements including food, water, air, and shelter that are necessary for survival.

Legal Mandates

Laws or regulations that require individuals or organizations to perform certain actions or comply with rules.