Capital adequacy requirement in a bank is:
A) the maintenance of adequate levels of capital to enable the bank to continue to operate in the event of unanticipated losses or problems.
B) the maintenance of adequate levels of capital to enable the bank to meet depositors' withdrawal.
C) the maintenance of adequate levels of capital to enable the bank to merge or acquire another bank.
D) the maintenance of adequate levels of capital to enable the bank to withstand external shocks.
Correct Answer:
Verified
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