Ask a Question
or
Create a Poll
  1. Home /
  2. Questions /
  3. Finance
  4. / Investments & Financial Markets
  5. / Investment & Financial Jargon

by soly on October 30th, 2009

soly

Question

Help answer this question below.

What is the compensating balances?

  • Like
  • Report
Share:
Other

Answers. 1 helpful answer below.

  • by XT on October 31st, 2009

    XT

    Average balance required by a bank for holding credit available. The more or less standard requirement for a bank line of credit, for example, is 10% of the line plus an additional 10% of the borrowings. Compensating balances increase the effective rate of interest on borrowings.

    No comments. Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

More Questions. Additional questions in this category.

You're reading What is the compensating balances?

Follow us on Facebook!

Related Ads

Related Questions

Professionally Researched

ANSWERBAG BUZZ

What would you be if you weren t human
What are some examples of compensating balances
Compasating balences
Compensating balances
What does compensating balances do

Answerbag

a Demand Media company