Over the past decades, off-balance sheet activities have become more popular in the global financial industry. Give two examples of off-balance sheet activities that have led to the collapse of the related financial institution. Give one example of off- balance sheet activities that has increased the financial institution's return without much effect on her risk. (10 marks) Suppose a small business owner come to a bank to apply for a loan. What are the various types of practice that the bank will use to reduce the problem and consequence of adverse selection and moral hazard?