The practice of compensating balances is diminishing.

Name: The practice of compensating balances is diminishing.
Brand: Quizplus
Rating: 4.7 (58 reviews)

Question

Quizplus · Accepted Answer

Compensating balances were a common practice in the past where customers had to maintain a certain amount of money in their bank accounts to receive better loan terms or to avoid fees. However, with the increasing competition in the banking industry, many banks have eliminated or reduced the use of compensating balances to stay competitive.

The Practice of Compensating Balances Is Diminishing