Which of the following is a reason why commercial
banks’ off-balance-sheet activities attracted concern following the Global
Financial Crisis (GFC)?

Question

Answer

Off-balance-sheet activities are limited to
traditional loans and deposits

Answer

These activities were difficult for regulators to
monitor due to their lack of transparency

Answer

Off-balance-sheet items are always more profitable
than on-balance-sheet assets

Answer

The notional value of off-balance-sheet activities was
significantly smaller than the banks' total assets

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