Which of the Following Is True of Compensating Balances

question 51

Multiple Choice

Which of the following is true of compensating balances?

• A)Compensating balances increase the effective cost of a loan.
• B)Compensating balances allow firms to convert their receivables into cash quickly.
• C)Only a small percentage of businesses can issue compensating balances.
• D)Most compensating balances are unsecured.

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Definitions:

Personality Disorders

A group of mental health conditions characterized by enduring patterns of behavior, cognition, and inner experience that deviate from the expectations of the culture.

Antipsychotic Medication

Drugs used to treat symptoms of psychosis, such as hallucinations or delusions, often associated with schizophrenia and bipolar disorder.

Epigenetic Processes

Mechanisms that alter gene expression without changing the DNA sequence, affecting how cells read genes.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive taxonomy published by the American Psychiatric Association that classifies mental disorders for clinical and research purposes.