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天火字典

英英字典: compensating_balance

compensating balance   (TTS Sound)



Overview of noun compensating_balance

The noun compensating balance has 1 sense


  • compensating balance, offsetting balance -- (a minimum credit balance that a bank may require a borrower to keep on deposit as a condition for granting a loan; a common requirement for establishing a line of credit at a bank; "the compensating balance increases the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged")

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