The growth in off-balance-sheet activities during the decade of the 1990s was due, in large part, to the use of derivative contracts.

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Off-balance-sheet activities, which refer to financial transactions that do not appear on a company's balance sheet, increased in the 1990s due to the widespread use of derivative contracts. These contracts include options, futures, and swaps, among others, and allow companies to hedge risk, speculate on future price movements, and engage in other financial activities.

The Growth in Off-Balance-Sheet Activities During the Decade of the 1990s