Explain four main categories of off-balance-sheet business

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Question - The development of domestic capital markets is extremely important for economic growth as they provide the long-term funds necessary for productive investment.' Discuss this statement using the equity market and the corporate debt market as examples.

-Off-balance sheet transactions are assets or liabilities that are not booked on the balance sheet, but deferred or contingent. They allow a party to have the benefit of an asset while transferring its liabilities to another party.

Required - Explain the four main categories of off-balance-sheet business and use an example to explain each category.

Reference no: EM132787888

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