Compensating Balances

question 46

Multiple Choice

Compensating balances:

• A) are used to finance inventories.
• B) earn high rates of interest for the firm.
• C) are ordered monthly (or quarterly) following forecasts based on cash budget analysis to compensate for shortfalls.
• D) increase the effective interest earned by banks on credit lines.
• E) require a commitment fee.

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Definitions:

Sociogram

A visual representation or diagram that maps out the relationships within a group, often used to identify social dynamics and patterns.

Peer Perceptions

The way in which individuals are viewed and judged by their peers, often influencing social interactions and self-esteem.

Assessment

The systematic evaluation or analysis of a particular subject, object, or phenomenon to determine its characteristics, value, or significance.

Method of Behavior Assessment

Techniques or strategies used to evaluate and understand an individual's behavior, often for the purpose of identifying needs, strengths, or areas for improvement.