The Inclusion of a Compensating Balance Requirement in a Line

question 88

True/False

The inclusion of a compensating balance requirement in a line of credit will reduce the effective annual cost of credit since the bank has additional collateral for the borrowing.

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Definitions:

Recessive Gene

A gene that is not expressed in the phenotype unless two copies are present, one from each parent.

Expressed

Expressed refers to the outward manifestation or display of traits, emotions, or genetically determined characteristics, visible through behavior, physical attributes, or verbal communication.

Gene Carrier

An individual possessing one copy of a mutated gene that can lead to a genetic disorder if passed to offspring, typically not affected themselves.

Human Organism

A living individual belonging to the species Homo sapiens, characterized by advanced cognitive abilities and complex social behaviors.