As of the first quarter of 2015, the vast majority of OBS activities of commercial banks was
A)future and forward contracts.
B)credit derivatives.
C)commitments to buy foreign exchange (FX).
D)swap contracts.
E)loans sold with recourse.

Question

Quizplus · Accepted Answer

According to the question, the focus is on commercial banks' OBS (off-balance-sheet) activities. The given options include future and forward contracts, credit derivatives, commitments to buy foreign exchange (FX), swap contracts, and loans sold with recourse. Out of these options, swap contracts are the most commonly used OBS activity by commercial banks. Swap contracts involve the exchange of cash flows between two parties and are used for hedging or speculative purposes. Therefore, the correct answer is D.

As of the First Quarter of 2015, the Vast Majority