Which of the following statements about off-balance-sheet (OBS) business of banks is INCORRECT?

Select one:

a.

Documentary letters of credit provide guarantees to third parties by banks.

b.

The size of OBS business of banks, in terms of dollar amount, is larger than their assets.

c.

Basel III takes into account OBS business of banks.

d.

The majority of OBS business of banks is in the category of credit derivatives.

e.

Loans approved by banks can be OBS items.