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Explain how volcanic eruptions impact mass wasting.
Compensating Balances
Minimum account balances that a borrower must maintain as part of a lending agreement, often used to offset a portion of the bank's cost in providing the loan.
Effective Interest Rate
The actual interest rate earned or paid on an investment, loan, or financial product, taking into account the effects of compounding over a given period.
Loan
A financial agreement where a borrower receives a specific amount of money from a lender and is obligated to repay it back with interest over a predetermined period.
Maturity Matching
A strategy in finance where the duration of investments in assets is matched with the duration of liabilities or obligations, aiming to reduce financial risk.
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