Banks have attempted to maintain adequate profit levels by
A)making fewer riskier loans,such as commercial real estate loans.
B)pursuing new off-balance-sheet activities.
C)increasing reserve deposits at the Fed.
D)decreasing capital accounts.

Question

Quizplus · Accepted Answer

Banks have sought to maintain or enhance their profitability by engaging in new off-balance-sheet activities, which can include services like derivatives trading, securitization of loans, and fee-based services that do not appear directly on the balance sheet but can generate significant income.

Banks Have Attempted to Maintain Adequate Profit Levels by