Upon obtaining a $100,000 business loan from his local bank,Arthur was informed that he must keep at least $10,000 on deposit with the bank.This is referred to as a/an

Name: Upon obtaining a $100,000 business loan from his local bank,Arthur was informed that he must keep at least $10,000 on deposit with the bank.This is referred to as a/an
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A compensating balance is a minimum balance that must be maintained in an account as part of a loan agreement with a bank.

Upon Obtaining a $100,000 Business Loan from His Local Bank,Arthur