Which of the Following Is Not an Off-Balance-Sheet Activity for Banks

question 18

Multiple Choice

Which of the following is not an off-balance-sheet activity for banks?

• A)derivative contracts
• B)loan commitments
• C)standby letters of credit
• D)trust services

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Definitions:

Connecting Points

In the context of networks or transportation, refers to nodes or locations that link various segments or paths, facilitating movement or communication.

Loans

Financial agreements where money is lent to another party in exchange for future repayment of the principal amount along with interest or other finance charges.

Retained Earnings

The portion of a company's profits that is kept or retained within the company to be used for business growth or debt repayment, rather than being distributed to shareholders as dividends.

Venture Capital

Investment provided by financiers to startups and small firms believed to possess a strong potential for growth in the long run.