Which of the following statements is/are correct about Capital Adequacy Ratio (CAR)? 1. It is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues. 2. CAR is decided by each individual bank. 3. The capital adequacy ratio is calculated by dividing a bank's capital by its risk-weighted assets. Select the correct answer using the codes given below - Study24x7
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Which of the following statements is/are correct about Capital Adequacy Ratio (CAR)? 1. It is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues. 2. CAR is decided by each individ...

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A

1 and 2 only

B

1 and 3 only

C

2 and 3 only

D

1, 2 and 3

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