Common Causes of Variation Represent Variation Due to the Inherent

question 73

True/False

Common causes of variation represent variation due to the inherent variability in the system.

---

Definitions:

Liable

Legally responsible or obligated.

Compensating Balance

A compensating balance is a minimum account balance that a borrower must maintain with a lender as part of the loan agreement.

Effective Interest Rate

The real rate of interest earned or paid on an investment or loan, taking into account the effect of compounding.

Pledging Receivables

Borrowing money using receivables as collateral.