Question
A decline in CASA ratio may
indicate:Solution
CASA ratio measures proportion of low-cost current and savings accounts. Increase in term deposits lowers CASA ratio.  Why Other Options Are Incorrect • A: Fee income unrelated. • C: Digital adoption doesn’t reduce CASA directly. • D: Service quality not linked directly. • E: Long-term profitability metric.  Banking Example: Customers shifting funds from savings to fixed deposits.
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