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:

Alkene

Hydrocarbons that are unsaturated and possess a minimum of one double bond between carbon atoms, identified by the formula CnH2n.

3-Methylpent-2-Ene

An unsaturated hydrocarbon with the formula C6H12, highlighting a branch and a double bond in its structure.

Hydrogenation

A chemical reaction that involves the addition of hydrogen (H2) across unsaturated bonds in an organic compound, typically to reduce or saturate it.

PVC

Polyvinyl chloride, a synthetic plastic polymer used in a wide array of products, including pipes, cables, and clothing.