An off-balance-sheet activity is transaction

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An off-balance-sheet activity is a transaction, contract, or commitment that a bank enters into but is not directly accounted for on the bank’s balance sheet. They are often reported in the notes to the financial statement or on a separate schedule. Examples of these are letters of credit, lines of credit, options, forwards, and swaps. Briefly, share your understanding of an off-balance-sheet activity.

Reference no: EM131886287

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