Money deposited by a borrower with the bank in a low or non-interest-bearing account as a condition of a loan agreement is called a:

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The money deposited by the borrower as a condition of the loan agreement is commonly known as a compensating balance. This is used by the bank to mitigate its risk and can either be a percentage of the loan amount or a predetermined amount. It is usually held in a non-interest-bearing account or a low-interest-bearing account.

Money Deposited by a Borrower with the Bank in a Low