A) Overall cost of deposit of a bank
B) Level of high cost term deposits
C) Share of current and savings bank deposit in the total deposits
D) Average outstanding level of current and saving deposits
E) Capital adequacy of the bank
Correct Answer: C
Solution :
The CASA (current and savings account) ratio is the ratio of deposits in the current and savings accounts of a bank to its total deposits. A high CASA ratio indicates that a higher portion of the bank deposits come from current and savings accounts. This means that the bank is getting money at low cost, since no interest is paid on the current accounts and the interest paid on savings account is usually low.
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