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What are compensating balances and why do banks require them from some customers? Under what circumstances would banks be most likely to impose compensating balances?
Compensating balances are funds that a bank needs a customer to maintain in a non-interest bearing account until the loan is retired.Banks occasionally impose compensating balance requirements so as to increase the bank's return on a loan. Compensating balances are the majorly likely to be used when the stated interest rate on a loan is below the bank's required rate of return.
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If a credit manager experience no bad debt losses over the past year. Would this be an indication of proper credit management? Why or why not
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I need to get a good understandin about what this means?
Q. Consigner for safe transportation of dangerous goods? It is the responsibility of the consigner to ensure the following, 1. The goods carriage should have a valid registr
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