Consider an FI with the Following Off-Balance-Sheet Items: a Two-Year

Multiple Choice

Consider an FI with the following off-balance-sheet items: A two-year loan commitment with a face value of $120 million, a standby letter of credit with a face value of $20 million and trade-related letters of credit with a face value of $70 million.What is the total credit equivalent amount?

A) $63 million
B) $94 million
C) $105 million
D) $310 million