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They will first allow the banker to balance its books. The bank is said to be in "balance". It will also allow for proper reconcilliation of related, offsettng accounts. A hypotication is levveraged debt by pledging a note and bank asset as collateral for a loan. For example, a $1,000 CD can stand as the assurance for a $1,000 loan. Bank regulators are less concered with the credit of the borrower for an obligation secured by compensating balances which is a compensating collateral account or certificate of deposit.
Jimmy Hoeger
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How trial balances balanced even with error?
These can be compensating errors.
What do compensating balances represent?
Accounts that are subject to bank service charges.
What the advantage of compensating winding for direct current generators?
i want to know about the advantage and disadvantages
How are compensating balances reported?
They are reported within the discolsure notes to the financial statements. A material compensating balance must be disclosed regardeless of the classification of the cash. Classification depends on the nature of the restriction and the classification of the related debt.
What does non compensating mean when playing the euphonium?
Compensating euphoniums are for professionals or euphonium players that are really dedicated to playing. This is because compensating euphoniums are much more expensive than non-compensating euphoniums. All compensating means is that the instrument has the further advantage of being able to play in the lower octaves using conventional fingerings. See related link for more information.
Bellows?
Expansion Joints are installed in the piping system to absorb vibration and shock. They also have the Advantage of reducing noise and compensating caused by misalignment.
Is Cash and balances with central banks current assets or non current assets?
Cash and balances are both current assets and shown in current section of balance sheet.
Expansion Joints?
Expansion Joints are installed in the piping system to absorb vibration and shock. They also have the Advantage of reducing noise and compensating caused by misalignment.
Advantages of merging two banks?
Advantages of merging two banks include the banks pooling their resources. Another advantage for the banks is decreasing their operating costs.
With what can users access account balances pay bills and copy monthly transactions from a banks computer right into their personal computers?
People can access their account balances on their personal computers, by visiting their banks website. Users can log in, pay bills and view monthly statements.
What are the needs of retail banking?
Customers and Balances. The primary way that retail banks earn money is based on the balances that are in their customers' account. The higher the account balances the better. By getting more accounts, they will bring in more money and the best way to get more accounts is to get more customers.
Disadvantages and advantages of merging banks?
One advantage of merging banks is that the banks share the risk of their money ventures. One of the disadvantages of merging them is that they share the profits of any venture.
