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.

---

Definitions:

Structure

The arrangement or organization of components within a system or the manner in which something is built or organized.

Cognitive Development

The process by which individuals acquire, construct, and utilize mental capacities and knowledge through experiences and interactions.

Language Development

The method through which young children acquire the ability to comprehend and express language in their early years.

Perceptual Development

The gradual development of the sensory systems and the interpretation of sensory information throughout childhood.