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What are compensating balances and why do banks require them from some customers? Under what circumstances would banks be most likely to impose compensating balances?
Compensating balances are funds that a bank needs a customer to maintain in a non-interest bearing account until the loan is retired.Banks occasionally impose compensating balance requirements so as to increase the bank's return on a loan. Compensating balances are the majorly likely to be used when the stated interest rate on a loan is below the bank's required rate of return.
Can a company have a default rate on its accounts receivable that is too low? Explain. A company might have a default rate on AR that would be considered too low if by liberal
#discuss the applicability of an operating cycle in vegetable growing business in uganda..
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#questioDiscuss the applicability of an operating cycle in the vegetable growing business n..
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Components of a Callable Bond A callable bond can be thought of as the sale of a call option by the investor to the issuer as it allows the issuer to repurchase the bond from t
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what is a perpetuity
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