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

question 9

Multiple Choice

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

• A)Commercial letter of credit
• B)Standby letter of credit
• C)Swap transaction
• D)Futures contract
• E)Consumer loans

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Definitions:

Obligations and Duties

Requirements or demands made legally or morally upon a person, which are necessary to fulfill a contract or role.

Directors

Individuals appointed to supervise and guide the affairs and strategic direction of a corporation or organization.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thereby having an interest in the company's performance and governance.

Corporation

A corporation is a legal entity that is separate and distinct from its owners, offering limited liability protection to its shareholders.