18-59 Banks Often Convert On-Balance-Sheet Bankers Acceptances into Off-Balance-Sheet Letters

question 2

True/False

18-59 Banks often convert on-balance-sheet bankers acceptances into off-balance-sheet letters of credit for the purpose of minimizing total assets and thus improving performance ratios such as ROA.

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Definitions:

Unanimous Written Consent

A document that officially records the agreement of all parties or directors on a decision, without the need for a formal meeting.

Limited Liability Partnership

A business structure that offers its owners limited personal liability for the debts and actions of the partnership, while operating with a flexible management structure.

Statutorily Required Filing

Refers to documents or submissions that must be filed according to law or statute.

Obligations

Duties or responsibilities imposed by law, contract, or conscience that one party owes to another.