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(2 points) Why off-balance-sheet activities could affect a financial institution (FI)s solvency? Can you give a few examples? (provide 3 examples). (2 points) What is
- (2 points) Why off-balance-sheet activities could affect a financial institution (FI)s solvency? Can you give a few examples? (provide 3 examples).
- (2 points) What is takedown risk? During financial crisis, do you expect takedown risk to be better or to be worse? Can takedown risk by itself lead to the failure of a financial institution? In your own words, please explain why or why not.
- (2 points) What is aggregate funding risk? What happens to FIs exposure of this risk during a credit crunch and why?
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