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  3. What are compensating balances? What is the relationship between the

What are compensating balances? What is the relationship between the

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What are compensating balances? What is the relationship between the amount of compensating balance requirement and the return on the loan to the FI? The following questions are related to the Appendix material.

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Financial Markets and Institutions

Financial Markets and Institutions

6th edition

Authors: Anthony Saunders, Marcia Cornett

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