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:

Weight On Future

The importance or impact that future events or expectations have on current decision-making or attitudes.

Self-control Problems

Difficulties individuals face in resisting temptation or impulsivity, often impacting long-term goals for instant gratification.

Poor Information

Refers to scenarios where the data available for decision making is inadequate, inaccurate, or misleading.

Overall Set

The complete or total collection of elements, items, or objects under consideration.