Question

Consider the following statements: 1.  Capital Adequacy Ratio (CA

  • R is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues 2.  CAR is decided by each individual bank. Which of the statements given above is/are correct?
A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2
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