Some Bank Loans Require the Firm to Maintain Some Amount

question 138

Multiple Choice

Some bank loans require the firm to maintain some amount of money on a balance at the bank which is known as:

• A)Compensating balance
• B)Transactions motive
• C)Precautionary motive
• D)Simple interest balance

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Definitions:

Incarceration Rates

The number of individuals within a population who are confined in prison or jail, expressed per 100,000 of the population.

Overrepresented

The state of being represented in a disproportionately high quantity relative to the actual population or occurrence rate.

Prison System

The organizational structure responsible for the detention, rehabilitation, and management of individuals convicted of crimes, encompassing various institutions and practices.

Ipperwash Crisis

A conflict in Canada between Indigenous people and the Ontario Provincial Police in 1995, centered around land claims and resulting in the death of an Indigenous protester.