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Why must marketers guard against stereotypes when using age and life-cycle segmentation?
Compensating Balance
A minimum balance that must be maintained in a bank account, often required by banks in return for loans or as part of a service agreement.
Effective Interest Rate
The actual interest rate on a loan or investment, taking into account the effect of compounding, fees, and other factors, more accurately reflecting the true cost or yield than the nominal rate.
Quoted Interest Rate
The interest rate that a lender provides to a borrower, usually expressed as an annual percentage of the loan amount.
Self-Liquidating
An asset or credit that can cover or repay its own cost through the income it generates.
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