Some Bank Loans Require the Firm to Maintain Some Amount

question 55

Multiple Choice

Some bank loans require the firm to maintain some amount of money on a balance at the bank which is known as:

• A)compensating balance
• B)transactions motive
• C)precautionary motive
• D)simple interest balance

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Definitions:

Sample Points

Individual units or observations collected from the sample, each of which represents a data point.

Department Store

A large retail store offering a wide variety of products and departments under one roof.

Merchandise

Products or goods that are bought, sold, and traded in the market, often referred to in retail contexts.

Sample Points

Represent individual observations or items selected from a larger population for the purpose of statistical analysis.