Activities such as standby lines of credit, overdraft protection, and unused credit card balances are examples of
A)off-balance-sheet activities.
B)junk bonds.
C)illegal activities for commercial banks.
D)derivatives.

Question

Quizplus · Accepted Answer

Standby lines of credit, overdraft protection, and unused credit card balances are all examples of off-balance-sheet activities, which refer to activities that involve financial instruments or transactions not recorded on a balance sheet but that can have an impact on a bank's financial performance and risk profile.

Activities Such as Standby Lines of Credit, Overdraft Protection, and Unused