Under a Compensating Balance Agreement

question 23

Multiple Choice

Under a compensating balance agreement:

• A) the minimum compensating balance is considered a cash equivalent.
• B) the compensating balance is available for day-to-day use.
• C) the net result is that the actual interest rate is higher than the stated interest rate.
• D) all of the above are true.

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Definitions:

False Imprisonment

An unlawful restraint of an individual's freedom of movement by another purporting to have the right to do so.

Compensatory Damages

Compensatory damages are financial awards given to individuals in civil lawsuits to compensate for losses, harm, or injury they have suffered due to another party's actions.

Punitive Damages

are awarded in legal cases to punish the defendant for egregious behavior and to deter similar actions in the future.

Survival Statutes

Laws that allow certain legal rights or actions to continue to exist even after the death of an individual involved.