Off$-$balance$-$sheet activities are

A$.$

activities that take place outside the$$ bank, such as operations with$$ ATMs, electronic banking and so on$.$

B$.$

activities that do not affect a$$ bank's balance sheet because they do not increase a$$ bank's profit.

C$.$

activities that are illegal and cannot be reflected in a$$ bank's balance sheet.

D$.$

activities that do not affect a$$ bank's balance sheet because they do not change either the$$ bank's assets or its liabilities.

Part $2$

Which from the following are$$ off$-$balance$-$sheet activities? $($Check all that$$ apply.$)$

A$.$

Trading activities.

B$.$

Loan commitment.

C$.$

Standby letters of credit.

D$.$

Issuing credits.

E$.$

Increase in reserve requirements.

F$.$

Loan sales.

Part $3$

Standby letters of credit are

A$.$

activities that include trading in the$$ futures, options, or swaps market.$$

B$.$

a promise by a bank to lend$$ funds, if$$ necessary, to the seller of commercial paper at the time that the commercial paper matures.

C$.$

a financial contract in which a bank agrees to sell the expected future returns from an underlying bank loan to a third party.$$

D$.$

a$$ bank's consent to provide a borrower with a stated amount of funds during some specified time.

Part $4$

Loan commitment is

A$.$

a$$ bank's consent to provide a borrower with a stated amount of funds during some specified time.$$

B$.$

activities that include trading in the$$ futures, options, or swaps market.$$

C$.$

a financial contract in which a bank agrees to sell the expected future returns from an underlying bank loan to a third party.$$

D$.$

a promise by a bank to lend$$ funds, if$$ necessary, to the seller of commercial paper at the time that the commercial paper matures.$$

Part $5$

Loan sales is

A$.$

a$$ bank's consent to provide a borrower with a stated amount of funds during some specified time.$$

B$.$

a promise by a bank to lend$$ funds, if$$ necessary, to the seller of commercial paper at the time that the commercial paper matures.

C$.$

activities that include trading in the$$ futures, options, or swaps market.

D$.$

a financial contract in which a bank agrees to sell the expected future returns from an underlying bank loan to a third party.$$

Part $6$

Trading activities are

A$.$

a promise by a bank to lend$$ funds, if$$ necessary, to the seller of commercial paper at the time that the commercial paper matures.

B$.$

activities that include trading in the$$ futures, options, or swaps market.$$

C$.$

a financial contract in which a bank agrees to sell the expected future returns from an underlying bank loan to a third party.$$

D$.$

a$$ bank's consent to provide a borrower with a stated amount of funds during some specified time.$$