What type of loan allows a borrower to maintain a compensating balance at the bank instead of putting up collateral?
A) Unsecured loan
B) Venture capital loan
C) Angel investor loan
D) Secured loan
E) Corporate bond
Answer: A
Explanation: A) With an unsecured loan, the borrower does not have to put up collateral. In many cases, however, the bank requires the borrower to maintain a compensating balance, the borrower must keep a portion of the loan amount on deposit with the bank in a non-interest bearing account.
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Answer the following statement true (T) or false (F)
Answer the following statement(s) true (T) or false (F)
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