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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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