Which of the Following Is True of Off-Balance-Sheet Activities

question 91

Multiple Choice

Which of the following is true of off-balance-sheet activities?

• A)They involve generation of fees without exposure to any risk.
• B)They include contingent activities recorded in the current balance sheet.
• C)They invite regulatory costs and additional "taxes."
• D)They have both risk-reducing as well as risk-increasing attributes.
• E)The risk involved is best represented by notional or face value.

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Definitions:

No-need Objection

A type of resistance or hesitation expressed by a potential customer, based on the belief that they do not need the product or service being offered.

Prospect

A prospect is a potential customer who has been identified as having the interest and ability to purchase a product or service.

Sales Presentation

A promotional talk or pitch aimed at generating interest in a product or service.

Prospect

A potential customer or client who has shown interest in a company's products or services but has not yet made a purchase.