The Required Compensating Balance Is Usually Computed as A

question 105

Multiple Choice

The required compensating balance is usually computed as a:

• A) percentage of customer loans outstanding.
• B) factor of accounts receivable.
• C) the bank's commitment to LIBOR.
• D) pledge of inventory value.

---

Definitions:

Nonprofit Corporation

A legal entity organized and operated for a collective, public or social benefit, rather than to generate profit for owners or investors.

Business Judgment Rule

A legal principle that shields corporate executives from liability for decisions made in good faith and with the belief that they were in the best interest of the company.

Fiduciary Duty

An obligation to act in the best interest of another party, such as the duty a trustee has to the beneficiaries of a trust.

Secretary Of State

A high-ranking official responsible for foreign affairs and administrative tasks within a government.