What are off-balance-sheet activities

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1. What is the intertemporal budget line? Explain how the intertemporal budget line determines an individual’s optimal present and future consumption (use a diagram to aid your explanation).

2. When it comes to the financial reports of commercial banks, what are off-balance-sheet activities? Give two examples of off-balance-sheet activities. And explain why off-balance-sheet activities are relevant for investors of the bank.

Reference no: EM132041088

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