Answer :
Answer:
Compensating balance
Explanation:
Compensating balance is when the borrower agrees to maintain an amount of cash in his account.
The lender can invest this money and this reduces the cost of borrowing
Answer:
Compensating balance
Explanation:
Compensating balance is when the borrower agrees to maintain an amount of cash in his account.
The lender can invest this money and this reduces the cost of borrowing