Explain the Purpose of the Capital Adequacy Requirement (CAR)

question 36

Essay

Explain the purpose of the capital adequacy requirement (CAR).

---

Definitions:

Square

To multiply a number by itself, or a geometric figure with four equal sides and four right angles.

Y-axis

The vertical line in a coordinate plane that measures the second coordinate of a point (its ordinate).

X-axis

The x-axis is the horizontal axis in a coordinate plane, used to represent one dimension of data or to plot the values of a function.

Ordered Pairs

A pair of elements (x, y), representing coordinates on a Cartesian plane.