Would It Be Worth It to Incur a Compensating Balance

question 104

Multiple Choice

Would it be worth it to incur a compensating balance of $15,000 in order to get a 2-percent-lower interest rate on a 1-year, pure discount loan of $1,000,000?

• A) Yes
• B) No
• C) Not enough information is given to determine

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Definitions:

Lentils

Edible legumes known for their lens shape, highly nutritious with a rich content of protein, fiber, and minerals like iron and folate.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses.

Nasogastric Tube

A flexible tube passed through the nose into the stomach, used for feeding or removing stomach contents.

Auscultate

The act of listening to the internal sounds of the body, typically using a stethoscope, as part of a medical examination.