The main ways in which banks can meet countercyclical capital buffer requirements include:

1. Reduce their voluntary capital buffers, leaving overall capital ratios unchanged.
2. Raise capital, through equity issues or higher retained earnings.
3. Reduce risk-weighted assets, by reducing exposures (including lending).
4. Rebalancing away from higher risk-weighted assets.
5. All of the answers.

Which of the following represent off-balance-sheet activities of commercial banks?

1. A customer deposits $1 million in a regular bank deposit account.
2. A customer chooses to transfer the deposit to a money market mutual fund account sponsored by the same bank.
3. The bank makes a loan for $1 million.
4. The bank securitizes the loan as a pool of loans that are sold off to investors.
5. Both (b) and (d).