1.What special problem do off-balance-sheet activities present to bank regulators?11

2.With respect to off-balance-sheet activates, what have bank regulator done about it?12

3.Explain the importance and role of risk management in the banking sector.

4.Identify and illustrate three major risk faced by bank, and critically evaluate the effectiveness on managing such risk in the banking sector.

5.How can the provision several types of financial services by one firm be both beneficial and problematic?

6.How does bank chartering reduce adverse selection problems? Does it always work?