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One of the Most Striking Trends for Many Modern FIs

question 41

Essay

One of the most striking trends for many modern FIs has been the growth in their off-balance-sheet activities and thus their off-balance-sheet risk.Explain what is meant by off-balance-sheet activities and the risk associated with it using an example.


Definitions:

Relevant Source

A document, person, or piece of information that relates directly to the subject being discussed or researched.

Relevant

Being closely connected or appropriate to the matter at hand.

Authoritative

Describes a commanding and self-confident approach; often considered respected and having expertise in a particular area.

Unbiased

Having no prejudice or favoritism towards someone or something, ensuring fairness.

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