Which of the following forms of compensating balance has a less severe effect on the borrower?
A)Line of credit
B)Average balance
C)Minimum balance
D)Revolving credit

Question

Quizplus · Accepted Answer

An average balance requirement allows the borrower to maintain a balance that averages out over a period, providing more flexibility and less immediate financial burden compared to a strict minimum balance requirement.

Which of the Following Forms of Compensating Balance Has a Less