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Compensating Balances Are Frequently a Part of Revolving Lending Arrangements

question 80

Essay

Compensating balances are frequently a part of revolving lending arrangements with banks,yet they add to the cost of financing for the borrower.Why,then,would borrowers agree to such terms?
What other types of alternative financing are available?


Definitions:

Analyzes The Rhythm

The process of examining the pattern or waves in an electrocardiogram (EKG) or other physiological signals to diagnose conditions.

Bag-mask Device

A hand-held device used to provide ventilation to a patient who is not breathing or who is breathing inadequately.

Automated External Defibrillator

A portable life-saving device designed to diagnose and treat sudden cardiac arrest with electrical therapy.

Mouth-to-mouth

A resuscitation technique involving one person breathing into the mouth of another to provide them with oxygen.

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