- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 13. Analysis of Financial Institutions
- Subject 3. Analyzing a Bank: Non-CAMELS Factors
CFA Practice Question
One limitation of the CAMELS approach is that it fails to address a bank's:
B. off-balance-sheet items
C. liquidity
A. earnings
B. off-balance-sheet items
C. liquidity
Correct Answer: B
Off-balance-sheet exposures need to be considered to analyze a financial institution.
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