Question: The required compensating balance is usually computed as a Multiple Choice, choose one from the following: 1 . percentage of the customer's loans outstanding. 2

The required compensating balance is usually computed as a
Multiple Choice, choose one from the following:
1. percentage of the customer's loans outstanding.
2. factor of accounts receivable.
3. percentage of the bank's commitments toward future loans to the customer.
4. percentage of the customer's loans outstanding or percentage of the bank's commitments toward future loans to the customer.

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