Question: Question 11 (a) How does one distinguish between an off-balance-sheet asset and an off-balance-sheet liability? Provide examples in explaining your answer. (3 marks) (b) How

Question 11 (a) How does one distinguish between

Question 11 (a) How does one distinguish between an off-balance-sheet asset and an off-balance-sheet liability? Provide examples in explaining your answer. (3 marks) (b) How is a financial institution exposed to draw down, interest rate and credit risks when it makes loan commitments? (6 marks) (c) Defend the statement that although off-balance-sheet activities expose financial institutions to several forms of risks, they also can alleviate the risks of financial institutions. Provide examples of how the off-balance sheet activities can be used to minimise the risks. (6 marks) Edit View Insert Format Tools Table 12pt Paragraph 15 pts BIU T V

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