Compensating Balances at a Commercial Bank Are

question 89

Multiple Choice

Compensating balances at a commercial bank are:

• A) net differentials of balances with correspondent banks
• B) maintained by Federal Reserve for services rendered
• C) account balances required in connection with unsecured business loans under bank lines of credit
• D) required vault-held reserves as an alternative to reserves held by Federal Reserve Banks

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Definitions:

Collective Socialization

The process through which individuals learn and adopt the norms, values, behaviors, and skills necessary for functioning within a particular society or group.

Objective Outcomes

are measurable and observable results obtained from a process, project, or activity that can be verified independently.

Subjective Outcomes

Results or consequences that are based on personal feelings, tastes, or opinions.

Socialization Tactic

Methods or strategies employed to acclimate new members to the social and cultural norms of an organization or group.