FIs are competing directly with loan commitments,one of their own OBS products,when they also offer
A)Futures contracts.
B)Swaps.
C)Standby letters of credit.
D)Forward contracts.

Question

Quizplus · Accepted Answer

Standby letters of credit are also a type of OBS product offered by FIs, but they are not in direct competition with loan commitments. Futures contracts, swaps, and forward contracts are financial derivatives that are not related to loan commitments.

FIs Are Competing Directly with Loan Commitments,one of Their Own