When a bank makes a loan, it sometimes requires borrowers to maintain a checking account at the

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When a bank makes a loan, it sometimes requires borrowers to maintain a checking account at the bank until the loan is paid off. What is the purpose of this requirement?

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Money Banking and Financial Markets

ISBN: 978-1429244091

2nd edition

Authors: Laurence M. Ball

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Question Posted: Dec 05, 2015 03:39 AM

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When a bank makes a loan, it sometimes requires borrowers to maintain a checking account at the

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One reason for this requirement is that checking balances serve as coll...View the full answer

Money Banking and Financial Markets

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