Which of the following methods can NOT be employed by lenders to control inventory that has been used as security for a loan?

Question

Quizplus · Accepted Answer

Compensating balance is a method used by lenders to require a borrower to maintain a certain level of deposits or reserves in an account with the lending bank. This method is not related to controlling inventory used as security for a loan. Blanket liens, trust receipts, and warehousing are all methods used by lenders to control inventory used as security for a loan.

Which of the Following Methods Can NOT Be Employed by Lenders