The Required Compensating Balance Is Usually Computed as a

question 112

Multiple Choice

The required compensating balance is usually computed as a

• A) percentage of customer loans outstanding.
• B) factor of accounts receivable.
• C) percentage of the bank's commitments toward future loans.
• D) a and c are correct.

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Definitions:

Traditional Classification

A method of organizing or categorizing based on long-established customs, practices, or criteria.

Organic

Refers to substances, practices, or systems that are based on living processes, especially in agriculture, or compounds containing carbon.

Functional

Serving a purpose, or capable of performing or operating according to a specific function or purpose.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.