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      Question

      The CAMELS rating system, used for bank supervision,

      does NOT include the factor:
      A Capital Adequacy Correct Answer Incorrect Answer
      B Asset Quality Correct Answer Incorrect Answer
      C Liquidity Correct Answer Incorrect Answer
      D Employee Turnover Correct Answer Incorrect Answer

      Solution

      CAMELS stands for Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk. Employee turnover is not a direct component.

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