Examples of Off-Balance-Sheet Activities Include

question 6

Multiple Choice

Examples of off-balance-sheet activities include

• A)trading activities.
• B)extending loans to depositors.
• C)borrowing from other banks.
• D)selling negotiable CDs.

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Definitions:

Expected Return

The anticipated value or profit that an investment is expected to generate, accounting for all known risks and rewards.

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability of returns for a given security or market index, indicating the degree of risk involved.

Risky Asset

Any asset that has a significant degree of risk associated with its expected returns, including the possibility of losing some or all of the original investment.

Expected Rate of Return

The average amount of profit or loss one can expect on an investment, based on historical data or estimations of future performance.