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Banking Awareness · Q28

Banking Awareness MCQs for Banking exams, IBPS, SBI

Banking Awareness · Banking Awareness · question 28

Q28

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

Answer: Option D

Solution

Answer: Option D
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