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Which of the following describe compensating balances?
A. A specified balance a borrower of a loan is asked to maintain in a low-interest account at the bank.
B. A specified balance a borrower of a loan is asked to maintain in a noninterest-bearing account at the bank.
C. Funds set aside for a future plant expansion.
D. A sinking fund established in connection with debt instruments.
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Business, 22.06.2019 01:30, hollymay808p0t9to
At the end of the week, carla receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. the bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named malik as a portion of his small business loan. malik uses the loan to buy a tractor for his construction business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. the bank profits from a portion of the interest payment received and also passes some of the interest back to carla in the form of an interest payment to her savings account. in this example, the bank is acting
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Business, 22.06.2019 22:30, GreenHerbz206
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. in this case, the country that produces jeans will produce million pairs per week, and the country that produces corn will produce million bushels per week.
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Which of the following describe compensating balances?
A. A specified balance a borrower of a loan...
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