Compensating Balances

question 39

Multiple Choice

Compensating balances

• A) are a particular form of collateral commonly required on commercial loans.
• B) are a required minimum amount of funds that a borrower (i.e., a firm receiving a loan) must keep in a checking account at the bank.
• C) allow banks to monitor firms' check payment practices, which can yield information about their borrowers' financial conditions.
• D) are all of the above.

Review empirical evidence on contributors to wage differences including ability, effort, and chance.

Understand the role and impact of minimum wage laws on labor demand.

Recognize the influence of unions and collective bargaining on wage rates.

Comprehend legal aspects concerning labor market discrimination in the United States.

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Definitions:

Environmental Indicators

Metrics used to assess the state of the environment, including measures of air quality, water quality, biodiversity, and climate change impacts.

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Documents prepared by organizations to report on their social and environmental impacts and performance over a specific period.

Social Responsibility

The obligation of individuals, organizations, and businesses to act in a way that benefits society at large, often associated with ethical and sustainable practices.

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A systematic evaluation of an organization's ethics programs and practices to ensure they are effective and align with business goals.