An off-balance-sheet asset is an item that:
A)moves on to the asset side of the balance sheet when a contingent event occurs
B)is off the balance sheet as it is not part of the FI's core operations
C)is off the balance sheet as the FI does not wish to reveal its existence
D)is off the balance sheet as it neither has an impact on the risk or profitability of the FI

Question

Quizplus · Accepted Answer

An off-balance-sheet asset is an item that moves on to the asset side of the balance sheet when a contingent event occurs. Examples of such assets include letters of credit, loan commitments, and derivative contracts.

An Off-Balance-Sheet Asset Is an Item That