What impact does a compensating balance requirement have on the cost of borrowing from a bank if

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What impact does a compensating balance requirement have on the cost of borrowing from a bank if the firm generally holds little or no checking balances at the bank? What would the impact be if the firm holds large checking balances?

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Essentials of Managerial Finance

ISBN: 978-0324422702

14th edition

Authors: Scott Besley, Eugene F. Brigham

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Question Posted: Apr 24, 2018 06:48 AM

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What impact does a compensating balance requirement have on the cost of borrowing from a bank if

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Any factor the decreases the amount of a loan that ca...View the full answer

Essentials of Managerial Finance

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