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balance vs compensating balance

compensating balance vs balance

balance and compensating balance both are nouns.

balance is a verb but compensating balance is not a verb.

Word NounAdjectiveVerbAdverb
balance Yes No Yes No
compensating balance Yes No No No
As nouns, compensating balance is a hyponym of balance; that is, compensating balance is a word with a more specific, narrower meaning than balance:
  • balance: the difference between the totals of the credit and debit sides of an account
  • compensating balance: a minimum credit balance that a bank may require a borrower to keep on deposit as a condition for granting a loan; a common requirement for establishing a line of credit at a bank
balance (noun) compensating balance (noun)
a scale for weighing; depends on pull of gravity a minimum credit balance that a bank may require a borrower to keep on deposit as a condition for granting a loan; a common requirement for establishing a line of credit at a bank
a weight that balances another weight
a wheel that regulates the rate of movement in a machine; especially a wheel oscillating against the hairspring of a timepiece to regulate its beat
harmonious arrangement or relation of parts or elements within a whole (as in a design)
(mathematics) an attribute of a shape or relation; exact reflection of form on opposite sides of a dividing line or plane
equality between the totals of the credit and debit sides of an account
the difference between the totals of the credit and debit sides of an account
something left after other parts have been taken away
equality of distribution
a state of equilibrium
balance (verb) compensating balance (verb)
hold or carry in equilibrium
compute credits and debits of an account
bring into balance or equilibrium
be in equilibrium
Difference between balance and compensating balance

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