Which statement is not correct about Capital Adequacy Ratio ?
A. It is a thermometer of Bank’s Health.
B. It is the ratio of its Capital to its Risk.
C. It can indicate the Capacity of the Bank’s ability to absorb the possible losses.
D. A good CAR makes vulnerable to the Depositors and lose faith in the banking system.
Answer: Option D
Related Questions on Banking Awareness miscellaneous
A. Bombay Stock Exchange
B. Delhi Stock Exchange
C. Calcutta Stock Exchange
D. Bangalore Stock Exchange
Which of the following is not a function of General Insurance?
A. Cattle Insurance
B. Crop Insurance
C. Fire Insurance
D. Medical Insurance
Liability- side of the balance-sheet comprises:
A. Capital and reserve
B. Long-term liabilities
C. Current liabilities
D. All of the above
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