A. Balancing
B. Set off
C. Reconciliation
D. Canceling

Correct Answer: Option B

B. Set off

Explanation

A set-off clause is a legal clause that gives a lender the authority to seize a debtor’s deposits when they default on a loan. A set-off clause can also refer to a settlement of mutual debt between a creditor and a debtor through offsetting transaction claims.

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