14. Loan commitments are classified as A) On-balance-sheet assets. B) Off-balance-sheet assets. Off-balance-sheet liabilities. D) On-balance-sheet liabilities. C) 15. In the measurement of credit risk it is not important to measure which of the following A) The likelihood that any given borrower will default. The amount recoverable if default happens. C) The likelihood more than one borrower will default at the same time, D) The economic viability of the firm's industry. All of the above are important to measure. E) 16. Which of the following is not an Off-Balance sheet activity? A) Derivative contracts for hedging purposes. B) Loan portfolios sold without recourse. C) When issued securities D) Letters of credit E) All the above are off-balance sheet activity. 17. At the retail level Financial Intermediaries typically use a simple accept/reject decision for lending whereas at the commercial/wholesale level they use both quantity of loan and pricing adjustments. A) True B) False