Question
_______ measures banking sector’s ability to absorb
shock arising from financial and economic stress.Solution
Capital Adequacy Ratio (CAR) is also known as Capital to Risk Assets Ratio (CRAR), is the ratio of a bank's capital to its risk. It is therefore indicative of the capital available with the bank to absorb any losses arising due to any financial or economic risk. It is calculated as the total capital of the bank (tier I + Tier II) divided by the risk weighted assets of the bank.
ABC Company extends credit terms of 45 days to its customers. Its credit collection would be considered poor if its average collection period was
What minimum percentage of the required CRR, are banks required to maintain on a daily basis?
What is the difference between bullion and numismatic coins?
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Which of the following risks are addressed by Asset Liability Management ?
A retail investor with a moderate risk tolerance is looking to diversify their investment portfolio and gain exposure to the stock market. They are inte...
What is the Minimum Holding Period (MHP) for loans with a tenor of up to 2 years before they can be transferred by the transferor?
A banking company has to submit to Reserve Bank under Section 25(1) of the Banking Regulation Act, a return regarding its assets in India. The frequency...
Which of the following is correct regarding Risk Adjusted Returns on investment?
     I.        It is the process where a Risk in ...
If the exchange rate between USD and INR is quoted as 1 USD = Rs.83, it is _________ while when it is quoted as Rs.100 = USD 1.21, it is __________.Â
Under which section of the Income Tax Act can an individual claim a deduction for interest paid on a housing loan for a self-occupied property?
