CAMEL Is an Acronym That Comes from the Key Areas

question 150

Multiple Choice

CAMEL is an acronym that comes from the key areas of a financial institution's safety and soundness examination. It stands for:

• A) Capital adequacy, Asset Quality, Management, Earning and Liquidity
• B) Credit Rating, Asset management, Employee turnover and liabilities
• C) Capital adequacy, Asset management, Earning and liabilities
• D) None of these

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Definitions:

Conclusion

A conclusion is the final part of an argument or process, logically deduced from the premises or evidence presented.

Diamonds

A form of carbon, diamonds are renowned for their physical properties, particularly their hardness and optical dispersion, making them valuable for jewelry and industrial applications.

Cogent

The property of an inductive argument that is strong and whose premises are true.

Valid

Correct or acceptable according to the law or logic; having a sound basis in reasoning or fact.