The Required Compensating Balance Is Usually Computed as a

question 100

Multiple Choice

The required compensating balance is usually computed as a

• A) percentage of customer loans outstanding.
• B) factor of accounts receivable.
• C) percentage of the bank's commitments toward future loans.
• D) two of the other answers are correct.

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Definitions:

Legal Barriers

Regulations or policies implemented by governing bodies that limit or control the entry of new firms into certain markets or industries.

Industry

The segment of the economy concerned with production, processing, and preparation of goods and services, often categorized into sectors like manufacturing, services, and agriculture.

Local Monopoly

A situation where a single firm dominates the market within a specific geographic area, limiting competition.

Neighborhood

A geographical area or community within a city or town, characterized by shared features or common identity among its residents.