A Minimum Checking Account Balance That a Firm Must Maintain

question 47

Multiple Choice

A minimum checking account balance that a firm must maintain with a bank to help offset the costs and services such as check clearing and cash management advice is called a _____ balance.

• A) transactions
• B) compensating
• C) precautionary
• D) speculative
• E) convertible

---

Definitions:

Enforceable Agreement

A contract or agreement that is legally binding and can be upheld or compelled by law.

Title of Goods

A formal documentation or legal term indicating ownership rights over goods.

Express Contract

A contract explicitly stated by the parties, either orally or in writing, detailing the terms clearly.

Contract Formed

refers to the creation of a legally binding agreement that arises when an offer by one party is accepted by another party, meeting the necessary legal requirements.