Also compensated balance, compensation balance. a balance wheel in a timepiece, designed to compensate for variations in tension in the hair spring caused by changes in temperature.
Banking. a deposit balance that is required to be left on deposit by a company to maintain or guarantee credit.
7 Chinese Loanwords To Expand Your VocabularyRead more in this article about some frequently asked questions and fun facts related to our definitions.
Origin of compensating balance
First recorded in 1795–1805
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2019