2-23 The growth in off-balance-sheet activities during the decade of the 1990s was due,in
large part,to the use of derivative contracts.

Question

Quizplus · Accepted Answer

The statement is true. The use of derivative contracts, such as swaps and options, allowed financial institutions to engage in off-balance-sheet activities and resulted in significant growth during the 1990s. These activities allowed institutions to manage risk and generate additional revenue, but also increased their exposure to market volatility and regulatory scrutiny.

2-23 the Growth in Off-Balance-Sheet Activities During the Decade of the 1990s