Compensating Balances Refer to Charges That Compensate the Bank for Work

question 208

True/False

Compensating balances refer to charges that compensate the bank for work it does to balance customer accounts.

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Definitions:

Problem Solving

The process of identifying solutions to specific issues or challenges.

Critical Thinking

The process of actively analyzing, synthesizing, evaluating, and reflecting on information gathered from observation, experience, or communication to make reasoned judgments.

Negative Reinforcement

The removal of a stimulus that in turn increases or maintains the probability of some behaviour.

Punishment

The application of an aversive stimulus following some behaviour designed to decrease the probability of that behaviour.