The CAR Requires ADI's to Hold Capital as a Proportion

question 31

Multiple Choice

The CAR requires ADI's to hold capital as a proportion of their risk-adjusted assets.The reasons for this do NOT include:

• A)capital contributes to an ADIs financial strength and stability
• B)capital reflects a commitment by the owners, as they face the risk of loss
• C)capital can sustain solvency when an ADI makes unexpected losses
• D)capital represents a reserve of funds that can be drawn on if required
• E)because shareholder's face the risk of loss, capital motivates prudent behaviour by an ADI's management.

---

Definitions:

Our Interests

Our Interests refer to the collective concerns, hobbies, or activities that a group or individual prioritizes and values.

Working-Class Women

relates to women belonging to the socio-economic class typically performing manual labor or industrial work, often highlighted in discussions of labor, gender equality, and socio-economic status.

Television Viewing

The activity of watching content on a television set, including broadcast, cable, streaming, and recorded shows.

Story Lines

A narrative sequence of events or experiences, real or invented, in novels, films, or similar works.