The Use of Off-Balance-Sheet Activities and Instruments Will Always Reduce

question 37

True/False

The use of off-balance-sheet activities and instruments will always reduce the risk to a bank.

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Definitions:

Disaffirms

To legally reject or void a contract or agreement, especially one entered into by minors or under conditions that invalidate consent.

Disaffirmance

The legal right of a minor to void contracts or agreements entered into, under specific conditions.

Contractual Capacity

The legal ability of a person or entity to enter into a contract.

Ratify

To formally approve or confirm an agreement, treaty, or action, making it officially valid.