Which of the following statements is/are correct?
1. The capital adequacy ratio (CAR) is a measurement of a bank’s available capital expressed as a percentage of the bank’s risk-weighted credit exposures.
2. CAR is critical to ensure that banks have enough cushion to absorb a reasonable amount of losses before they become insolvent.
Select the correct answer using the code given below:
Which of the following statements is/are correct?
1. The capital adequacy ratio (CAR) is a measurement of a bank’s available capital expressed as a percentage of the bank’s risk-weighted credit exposures.
2. CAR is critical to ensure that banks have enough cushion to absorb a reasonable amount of losses before they become insolvent.
Select the correct answer using the code given below:
Options
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