Deposits Held as Compensating Balances

question 78

Multiple Choice

Deposits held as compensating balances

• A)usually do not earn interest.
• B)if legally restricted and held against short-term credit may be included as cash.
• C)if legally restricted and held against long-term credit may be included among current assets.
• D)none of these.

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Definitions:

Inequality

The unequal distribution of resources, opportunities, rights, and power among people in a society.

Accumulation

The process of gradually gathering or acquiring an increasing quantity of something over time.

Fraud

A deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Execution

The process of carrying out a court order or judgment, including the legal procedures involved in enforcing rights or the carrying out of the terms of a legal document.