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Compensating Balance Is a Proportion Of

Question 49

Multiple Choice

Compensating balance is a proportion of:


A) a loan that a borrower is required to hold on deposit at a correspondent bank
B) a loan that a borrower is required to hold on deposit in foreign reserves
C) a loan that a borrower is required to hold on deposit at the lending institution
D) the investment that a borrower is required to hold on deposit at the lending institution

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