Since 1980, banks have faced declining profits from traditional activities like lending due to increased competition and regulation. To offset this, they have increasingly relied on off-balance-sheet activities, such as derivatives and fee-based services, to boost income.

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Since 1980

Question 61

Multiple Choice

Since 1980

A) bank profitability has declined.
B) banks have offset the decline in profits from traditional activities with increased income from off-balance-sheet activities.
C) banks have offset the decline in profits from off-balance-sheet activities with increased income from traditional activities.
D) bank profits have grown rapidly due to deregulation.

Correct Answer: