Question: A compensating balance refers to: Select one: a. A minimum balance that a financial institution requires a firm to maintain in its account as part

A compensating balance refers to: Select one: a. A minimum balance that a financial institution requires a firm to maintain in its account as part of a borrowing arrangement b. The minimum balance established for a petty cash fund C. The amount of cash invested temporarily in highly marketable securities d. None of the above e. The final cash balance achieved in a bank reconciliation

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