Compensating Balance

Amount of money that is required from a bank in order for a customer to maintain an account that does not earn interest. This is in exchange for free services.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser

Next Terms: Completion Risk, Compound Duty Rate, Compradore, Compulsory Winding Up, Conditional Payment, Conditions of Carriage, Conduit Borrower, Conduit IRA, Conduit Principle, Conformed Copy

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Compensating Balance

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