A compensating balance essentially increases the interest rate on money borrowed. Explain.

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"A compensating balance essentially increases the interest rate on money borrowed." Explain.

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Introduction to Financial Accounting

ISBN: 978-0133251036

11th edition

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

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Question Posted: Feb 20, 2015 08:49 AM

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A compensating balance essentially increases the interest rate on money borrowed. Explain.

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True If a compensating balance is required a borrower does not hav...View the full answer

Introduction to Financial Accounting

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