Final answer:
Acquiring government bonds is the correct activity that involves ADIs issuing and investing in instruments of non-customers, which is typical in balance sheet management. Government bonds are low-risk, ensuring a return on investment, and are considered an asset for the bank.
Step-by-step explanation:
The student is asking about activities associated with Authorized Deposit-taking Institutions (ADIs) that pertain to the managing of assets on a balance sheet. Specifically, the question asks what activities involve issuing and investing in instruments of non-customers, a behavior typically observed in balance sheet management by ADIs. Among the given options, acquiring government bonds is the correct answer, as it is a common investment activity carried out by banks to utilize the money received from deposits. Banks buy government bonds, which are low-risk assets that ensure a stream of future payments, contributing to a bank's assets. The practice of offering personal loans, on the other hand, targets bank customers. Interbank lending and managing pension funds are related financial activities but do not directly pertain to the question of investing in instruments of non-customers.