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  2. Topic
    Business
  3. Study Set
    Financial Institutions Management
  4. Exam
    Exam 10: Credit Risk: Individual Loan Risk
  5. Question
    Because of Compensating Balances and Fees Used to Increase Return
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Because of Compensating Balances and Fees Used to Increase Return

Question 11

Question 11

True/False

Because of compensating balances and fees used to increase return on a loan, the credit risk premium is not the fundamental factor driving the promised return once the base rate on the loan has been set.

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