If lines of credit and other off-balance sheet activities do not, by definition, appear on the banks

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If lines of credit and other off-balance sheet activities do not, by definition, appear on the bank’s balance sheet, how can they influence the level of liquidity risk to which the bank is exposed?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Oct 02, 2014 08:00 AM

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If lines of credit and other off-balance sheet activities do not, by definition, appear on the banks

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With lines of credit customers pay a fee to the bank for the right to borrow at their beh...View the full answer

Money Banking and Financial Markets

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