A Compensating Balance Is a Checking Account Balance Equal to a Certain

question 38

True/False

A 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:

Rapport

A positive relationship based on mutual trust, understanding, and emotional affinity.

Imposes

To enforce or apply an authority or rule upon others, often without their consent.

Manipulate

To handle or control something, often in a skilled manner, but can also imply influencing or managing people or situations in an unfair or deceitful way.

Position

The location or arrangement of something or someone in relation to its surroundings or another entity.