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:

Gray Matter

A part of the brain and spinal cord made primarily of neuronal cell bodies, dendrites, and unmyelinated axons, playing a key role in processing and regulating neural signals.

Cortex

The outer layer of an organ or structure, such as the cerebral cortex of the brain, which is involved in high-level functions including memory, attention, perception, awareness, thought, language, and consciousness.

Deep Cerebral Nuclei

Clusters of neurons in the deep regions of the cerebrum involved in regulating voluntary movement and learning.

Schwann Cell

A type of glial cell in the peripheral nervous system that wraps around nerve fibers, forming the myelin sheath, which helps in the rapid conduction of nerve impulses.