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Q: Expand CAR, in Banking Terminology?

  • 1
    Current Applicable Ratio
  • 2
    Capital Adequacy Ratio
  • 3
    Capital Available Request
  • 4
    Compiled Acquired Ratio
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Answer : 2. "Capital Adequacy Ratio"
Explanation :

Answer: B) Capital Adequacy Ratio Explanation: Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk.   1. The capital adequacy ratio (CAR) is a measure of a bank's capital. 2. It is used to protect depositors and promote the stability and efficiency of financial systems around the world. 3. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements.

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