A ______ balance is a minimum checking account balance that a firm must maintain with a bank to help offset the costs and services, such as check clearing and cash management advice, that the bank offers with a loan.

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A compensating balance is a minimum balance that a firm must maintain with a bank to offset the costs and services provided by the bank, such as check clearing and cash management advice, that the bank offers with a loan. This balance is also called a required reserve or minimum balance.

A ______ Balance Is a Minimum Checking Account Balance That