By Requiring a Borrower to Maintain a Compensating Balance, the Bank

By requiring a borrower to maintain a compensating balance, the bank is

A) giving the borrower the flexibility to withdraw funds as it deems necessary
B) providing the borrower with additional funds when the borrower exceeds its credit limit
C) effectively lowering the interest rate charged to the borrower
D) reducing the amount of funds available to the borrower and hence effectively increasing the loan rate
E) all of the above