The Use of Futures Contracts by Banks Is Subject to Risk-Based

question 53

True/False

The use of futures contracts by banks is subject to risk-based capital guidelines through the off-balance-sheet risk calculations for risk-based capital.

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Definitions:

Beneficiary

An person or entity designated to receive benefits or assets under a legal arrangement or instrument, such as a will, trust, or insurance policy.

Image Replacement Document

A document that substitutes for the original through the use of photographs or scanned copies, often used when the original is lost or inaccessible.

Substitute Check

A paper reproduction of both sides of an original check that can be processed electronically.

Obligated To Pay

Having a legal or moral responsibility to make a payment or settle a debt.