Compensating Balance Is a Checking Account Balance Equal to a Certain

question 20

True/False

Compensating balance is a checking account balance equal to a certain percentage of the amount borrowed from a bank under a line-of-credit or revolving credit agreement.

---

Definitions:

Kidney

A pair of organs in the urinary system that filter waste products from the blood and excrete them in urine.

Microscopic Units

Small units of measurement typically used to describe dimensions of cells and microorganisms, not visible to the naked eye.

Calyx

The cuplike division of the kidney pelvis.

Medulla

A central region of an organ, notably in the brain (medulla oblongata) affecting vital functions like breathing and heart rate, and in the kidney involved in regulating electrolyte balance.