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Which of the following statements correctly describes the concept of a compensating balance? O It is the difference between the balance in the cash account

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Which of the following statements correctly describes the concept of a compensating balance? O It is the difference between the balance in the cash account and the combined balances in all cash equivalent account O It is the amount by which the chequing or savings accounts may be overdrawn. O It is the minimum cash amount that banks often require customers to maintain in their chequing or savings accounts. It is the maximum amount that may be transferred between accounts

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