A) Adequacy
B) Assets
C) Average
D) Arbitrage
E) Absolute
Correct Answer: A
Solution :
Capital Adequacy Ratio (CAR), also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk. It is expressed as a percentage of a bank's risk weighted credit exposures. \[\text{CAR=}\frac{\text{Tier One Capital + Tier Two Capital}}{\text{Risk Weighted Assets}}\]You need to login to perform this action.
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