When FIs form off-balance sheet subsidiaries to remove assets from their balance sheet,the subsidiary activities
A)are regulated as though they are part of the parent institution.
B)occur beyond the reach of existing state and federal monitoring and regulation.
C)are monitored and regulated by the Securities and Exchange Commission (SEC).
D)are reported to the National Association of Securities Dealers (NASD).

Question

Quizplus · Accepted Answer

Off-balance sheet subsidiaries are often used to move activities beyond the direct oversight of state and federal regulators, allowing institutions to manage risk and capital more flexibly.

When FIs Form Off-Balance Sheet Subsidiaries to Remove Assets from Their