11-24 Because a Compensating Balance Is the Proportion of a Loan

question 86

True/False

11-24 Because a compensating balance is the proportion of a loan that must be kept on deposit at the lending institution,the actual interest rate on the usable portion of these loans is higher.

---

Definitions:

Meta-analytic Research

A statistical technique that combines the results of multiple scientific studies to clarify findings and derive conclusions that can be generalized across research.

Relaxation Training

Techniques and exercises designed to help individuals reduce stress and physical tension, promoting relaxation.

Cognitive Therapy

A form of psychotherapy that focuses on identifying and challenging negative thought patterns to alter unwanted behavior and emotions.

In Vivo Desensitization

A behavioral therapy technique that involves gradual exposure to a feared stimulus in real-life situations to reduce the associated anxiety.