1) Examples of off balance sheet activities include
A) loan sales.
B) extending loans to depositors.
C) borrowing from other banks.
D) selling negotiable CDs.
2) All of the following are examples of off balance sheet activities that generate fee income for banks except
A) foreign exchange trades.
B) guaranteeing debt securities.
C) back up lines of credit.
D) selling negotiable CDs.
3) Which of the following is not an example of a backup line of credit?
A) loan commitments
B) overdraft privileges
C) standby letters of credit
D) mortgages
4) Off balance sheet activities involving guarantees of securities and back up credit lines
A) have no impact on the risk a bank faces.
B) greatly reduce the risk a bank faces.
C) increase the risk a bank faces.
D) slightly reduce the risk a bank faces.