Which of the following

statements about off-balance sheet transactions are correct? 

I. Underwriting commitments

are not recorded on the balance sheet because they are contingent in nature.

II. Off-balance sheet activities have become a less significant source of income

for modern banks.

III. Off-balance sheet commitments refer to contractual obligations that have not

yet resulted in a financial asset or liability on the balance sheet.

IV. Interest rate swaps entered into by CBA with its customers are recorded as

part of the bank’s liabilities.