A Compensating Balance Is an Arrangement in Which a Bank

question 128

True/False

A compensating balance is an arrangement in which a bank agrees to lend up to a specified maximum amount of funds during a designated period.

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Definitions:

Proportion

The ratio or fraction that represents the part of the whole or a percentage of the total.

Sample

A subset of individuals, items, or data taken from a larger population for the purpose of analysis.

High School Education

A secondary level of formal schooling that follows primary education, typically including grades 9 or 10 through 12, and culminating in a diploma.

Proportion

A statistical measure that reflects the fraction or percentage of the total number of cases that fall within a particular category.