The Required Compensating Balance Is Usually Computed as a

question 45

Multiple Choice

The required compensating balance is usually computed as a

• A) percentage of the customer's loans outstanding.
• B) factor of accounts receivable.
• C) percentage of the bank's commitments toward future loans to the customer.
• D) percentage of the customer's loans outstanding or percentage of the bank's commitments toward future loans to the customer.

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Definitions:

Electrons

Subatomic particles with a negative charge, orbiting the nucleus of an atom and involved in chemical reactions and conductivity.

Ions

Particles that carry a net electric charge as a result of either losing or acquiring one or more electrons.

Energy Waves

Oscillations that transfer energy from one place to another, such as sound waves, light waves, or electromagnetic waves.

Hydrolysis Reactions

Hydrolysis reactions involve the chemical breakdown of a compound due to its reaction with water.