A Capital Adequacy Ratio Measures

question 71

Multiple Choice

A capital adequacy ratio measures:

• A) the value of a bank's capital to its risk-weighted portfolio of assets.
• B) the proportion of deposits that a bank should hold in the form of cash.
• C) the percentage of deposits that a bank should hold in the form of gold.
• D) the ratio of reserves that need to be held as near-liquid assets.

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