What Are Compensating Balance and What Effect Does It Have

question 28

Essay

What are compensating balance and what effect does it have on the loan?

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Definitions:

Poverty Rate

The percentage of the population living below the poverty line, which is typically defined as the income threshold below which an individual or family is considered unable to meet basic needs for living.

More Education

The process or approach of acquiring additional knowledge, skills, values, beliefs, and habits through various means such as schooling, training, or research.

John Rawls

A philosopher known for his contributions to political and moral philosophy, especially in his theory of justice as fairness.

Economically Fair Society

A concept where wealth and resources are distributed evenly or equitably among all members of a society, aiming for fairness in economic conditions.