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      Question

      A decline in CASA ratio despite growth in deposits may indicate:

      A Increase in current accounts Correct Answer Incorrect Answer
      B Increase in term deposits Correct Answer Incorrect Answer
      C Higher digital adoption Correct Answer Incorrect Answer
      D Better cross-selling Correct Answer Incorrect Answer
      E Reduced competition Correct Answer Incorrect Answer

      Solution

      CASA ratio falls when proportion of term deposits increases relative to current and savings accounts. Why others are incorrect: Increase in current accounts raises CASA; Digital adoption unrelated; Cross-selling may not affect CASA directly; Reduced competition irrelevant. Banking Example: Customers moving funds into fixed deposits.

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