The inclusion of a compensating balance requirement in a line of credit will reduce the effective
annual cost of credit since the bank has additional collateral for the borrowing.
Indicate whether the statement is true or false
FALSE
Business
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Even if there is certainty of future payoffs, there can still be risk
Indicate whether the statement is true or false.
Business
What is the recommended way of making interest rates a function of time in a Cox, Ross, Rubinstein tree?
A. Make u a function of time B. Make p a function of time C. Make u and p a function of time D. Make the lengths of the time steps unequal
Business