πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!


    Question

    What is the function of the Capital Adequacy Ratio (CAR)

    in the banking sector?
    A Ensuring customer satisfaction Correct Answer Incorrect Answer
    B Assessing the profitability of banks Correct Answer Incorrect Answer
    C Measuring the bank's capital to its risk Correct Answer Incorrect Answer
    D Regulating foreign exchange rates Correct Answer Incorrect Answer
    E Monitoring branch expansions Correct Answer Incorrect Answer

    Solution

    The Capital Adequacy Ratio (CAR) measures a bank's capital in relation to its risk weighted assets, ensuring that the bank has enough capital to absorb potential losses.

    Practice Next
    More Economy and Banking and Finance Current Affairs Questions
    ask-question