Which of the Following Is True of Off-Balance-Sheet Activities

Multiple Choice

Which of the following is true of off-balance-sheet activities?

A) They involve generation of fees without exposure to any risk.
B) They include contingent activities recorded in the current balance sheet.
C) They invite regulatory costs and additional "taxes."
D) They have both risk-reducing as well as risk-increasing attributes.
E) The risk involved is best represented by notional or face value.