Compensating Balances Have the Following Advantages EXCEPT

question 10

Multiple Choice

Compensating balances have the following advantages EXCEPT:

• A)Have the effect of increasing total deposits and assets
• B)Can be re-loaned to another customer
• C)Are directly comparable between banks
• D)Form a cushion

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Definitions:

Quadrant A

A section of a Cartesian plane divided by the X and Y axes, used in mathematics and business to represent different categories or segments.

Strength

The capacity to withstand force or stress; often used to describe the robustness of materials, structures, or character.

Threat

A warning or indication of a possible danger, harm, or adverse condition.

Market Segment

A group of potential customers with similar needs, characteristics, or behaviors who might require separate products or marketing mixes.