Compensating balances are: 1. Used by banks as a substitute for charging service fees II. Funds placed in an account handled by a third-party trustee III. Rewards paid to customers for opening new checking accounts Select one: O A I, II and III O B. and Il only O C. T and Ill only OD. Tonly Which of the following describes a loan in which the interest is deducted in advance? Select one: OA A mortgage loan OB. An installment loan OC A discounted loan OD. A compensating balance loan Which of the following is true of pledging accounts receivable? 1. Accounts receivable are used as collateral for a loan II. Accounts receivable are used to back inventory financing III. Accounts receivable are sold to secure a loan Select one: O a. I and Ill only O b. I and Il only OCI. II and III Od. I only