Question

What is the function of the Capital Adequacy Ratio (CAR)

Q: Answer-What is the function of the Capital Adequacy Ratio (CAR) in the banking sector?

The Capital Adequacy Ratio CAR measures a banks capital in relation to its risk weighted assets, ensuring that the bank has enough capital to absorb potential losses.

in the banking sector?

A Ensuring customer satisfaction

B Assessing the profitability of banks

C Measuring the bank's capital to its risk

D Regulating foreign exchange rates

E Monitoring branch expansions

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What is the function of the Capital Adequacy Ratio (CAR)

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