[Solved] A compensating balance on a bank loan effectively ____________ the cost of the loan. A)raises B)lowers C)has no effect on D)has an indeterminate effect on E)none of the above Psychosexual Stages: Psychosexual Stages is a Freudian theory describing how personality development occurs in five stages (oral, anal, phallic, latency, and genital) associated with erogenous zones. Phallic Stage: In Freudian psychoanalytic theory, the third stage of psychosexual development (ages 3-6) where the libido's focus is on the genital area, and the child develops sexual identification with the same-sex parent. Sexual Orientation: The direction of an individual’s erotic interests, today viewed as a continuum from exclusive male–female relations to exclusive same-gender relations. Defense Mechanism: Psychological strategies used by individuals unconsciously to protect themselves from anxiety or unacceptable thoughts and feelings.