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What is a network structure? What are its characteristics?
Commitment Fee
A banking fee charged by lenders to secure a line of credit or a loan, often paid by borrowers to guarantee access to credit.
Prime Rate
The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark for other interest rates.
Effective Interest Rate
The real rate of interest earned or paid on a loan or investment, accounting for the effect of compounding over the period.
Compensating Balance
A minimum account balance that a borrower must maintain as a condition for borrowing from a lender or for obtaining favorable loan terms.
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