Asked by
Caleb Wicklund
on Dec 01, 2024
Verified
Compensating balances cannot normally be used for transactions.
Compensating Balances
Compensating balances are minimum balance requirements that a bank may impose on a borrower, kept in a non-interest-bearing account, as part of loan agreements.
- Understand the significance and processes involved in cash flow management, along with the advantages and disadvantages of various cash management approaches.
Verified Answer
AB
Learning Objectives
- Understand the significance and processes involved in cash flow management, along with the advantages and disadvantages of various cash management approaches.
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