compensating balance

[ kom-puhn-sey-ting bal-uhns ]

noun

1. 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.
2. Banking. a deposit balance that is required to be left on deposit by a company to maintain or guarantee credit.

Word History and Origins

Origin of compensating balance¹

First recorded in 1795–1805

Example Sentences

Life works upon a compensating balance, and the happiness we gain in one direction we lose in another.

From Project Gutenberg

Except for the fact that he had tried to do right, he could see no compensating balance.

From Project Gutenberg

To lessen this shock, a compensating balance was designed, but which is not now in use.

From Project Gutenberg

It forms, in a sort, or is to form, the compensating balance-wheel of the successful working machinery of aggregate America.

From Project Gutenberg