Which of the following is true regarding regulatory rules for standby credit letters issued by banks?
A) They must list the standby credit letter as a liability on their balance sheet
B) They do not have to list standby credit letters when assessing the risk exposure to a single credit customer
C) They must apply the same credit standards for approving standby credit letters as direct loans
D) They can apply lower capital standards to standby credit letters than loans
E) None of the options is true
Correct Answer:
Verified
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