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3. Answer the following questions related to off-balance-sheet (OBS) activities: (1) What types of activities are normally classified as off-balance-sheet (OBS) activities? (2 points)

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3. Answer the following questions related to off-balance-sheet (OBS) activities: (1) What types of activities are normally classified as off-balance-sheet (OBS) activities? (2 points) (2) How does an OBS activity move onto the balance sheet as an asset or liability? (2 points) (3) What are the benefits and risks of OBS activities to a bank? (2 points)

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