An Off-Balance-Sheet Asset Is an Item That

question 75

Multiple Choice

An off-balance-sheet asset is an item that:

• A)moves on to the asset side of the balance sheet when a contingent event occurs
• B)is off the balance sheet as it is not part of the FI's core operations
• C)is off the balance sheet as the FI does not wish to reveal its existence
• D)is off the balance sheet as it neither has an impact on the risk or profitability of the FI

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Definitions:

Single-Factor Explanations

The attribution of a phenomenon or behavior to a single cause, ignoring the potential complexity and multiplicity of contributing factors.

Risk Factors

Aspects or conditions that increase the likelihood of developing a disease, disorder, or adverse condition.

Specific Causes

Particular factors or conditions that directly lead to a certain effect or outcome, underlying the cause-and-effect relationship.

Dysfunctional Behaviour

Behaviors that are counterproductive or impair an individual's ability to function effectively in daily life.