Activities Such as Standby Lines of Credit, Overdraft Protection, and Unused

question 74

Multiple Choice

Activities such as standby lines of credit, overdraft protection, and unused credit card balances are examples of

• A)off-balance-sheet activities.
• B)junk bonds.
• C)illegal activities for commercial banks.
• D)derivatives.

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Definitions:

Debit Column

In bookkeeping, the column in an account where debits are recorded, typically on the left-hand side.

Assets

Economic resources owned or controlled by a business or individual, expected to bring future benefits.

Expenses

The costs incurred in the process of generating revenues, including costs like rent, salaries, and utilities.

Revenues

The gross revenue stemming from the primary operational activities of a firm, particularly from selling products or services.