What Is a Compensating Balance

question 81

Multiple Choice

What is a compensating balance?

• A) Savings account balances.
• B) Margin accounts held with brokers.
• C) Temporary investments serving as collateral for outstanding loans.
• D) Minimum deposits required to be maintained in connection with a borrowing arrangement.

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Definitions:

Subduction Zone

A region where one tectonic plate moves under another, often causing earthquakes and volcanic activity.

Convergent Boundary

A convergent boundary is a type of tectonic plate boundary where two plates move toward each other, often resulting in mountain building, earthquakes, and volcanic activity.

Plate Boundaries

The edges where two tectonic plates meet, characterized by seismic and volcanic activity, along which plates move apart, together or past each other.

Plate Boundaries

The edges where two tectonic plates meet, often associated with seismic and volcanic activity.