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    Foundations of Financial Management Study Set 4
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    Exam 8: Sources of Short-Term Financing
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    Compensating Balances
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Compensating Balances

Question 89

Question 89

Multiple Choice

Compensating balances


A) are used by banks as a substitute for charging service fees.
B) are created by having a sweep account.
C) lower the effective rate.
D) are used to reward new accounts.

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