Which of the Following Is True of Off-Balance-Sheet Activities

question 177

Multiple Choice

Which of the following is true of off-balance-sheet activities?

• A)They involve generation of fees without exposure to any risk.
• B)They include contingent activities recorded in the current balance sheet.
• C)They invite regulatory costs and additional "taxes."
• D)They have both risk-reducing as well as risk-increasing attributes.

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Definitions:

Difference Threshold

The minimal change in a stimulus that can just barely be detected by an organism.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as the "just noticeable difference" (JND).

Energy

The capacity to do work or the power derived from the utilization of physical or chemical resources.

Original Stimulus

The initial event or object that triggers a sensory or psychological response.