Consider an FI with the Following Off-Balance-Sheet Items: a Two-Year

question 48

Multiple Choice

Consider an FI with the following off-balance-sheet items: A two-year loan commitment with a face value of $120 million, a standby letter of credit with a face value of $20 million and trade-related letters of credit with a face value of $70 million.What is the total credit equivalent amount?

• A)$63 million
• B)$94 million
• C)$105 million
• D)$310 million

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Definitions:

Dimensions

Aspects or features that can be measured or used to define or describe something, often used in various contexts like physical dimensions or dimensions of an issue.

Fraternity and Sorority

Social organizations, primarily found in North American colleges and universities, that are based on a system of brotherhood or sisterhood.

Out-group

A social group toward which an individual feels opposition, rivalry, or hostility.

In-group

A social group to which an individual feels a sense of belonging and identity.