Which of the following defines capital adequacy?
A) The total value of assets to liabilities
B) A bank's capital relative to its assets, where the assets are weighted according to the degree of risk
C) The difference in average maturity of loans and assets
D) The ratio of bank reserves to ordinary share capital
Correct Answer:
Verified
Q13: Which of the following describes a repo?
Q14: Consider the following assets:
(i) Bills of Exchange
(ii)
Q15: The rate of discount on bills can
Q16: Commercial banks operate primarily to
A) help people.
B)
Q17: A loan made by a bank is
Q19: Which of the following statements is correct?
Q20: Why will large global financial institutions be
Q21: The ability of commercial banks to make
Q22: Pound Bank has £250 million in sight
Q23: A bank has £100 million in liquid
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