Examveda
Examveda

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

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