Which of the following statements is correct?
A) The greater the average risk factor of a bank's assets, the lower will be the value of its risk- weighted assets and the higher will be its CAR.
B) The lower the average risk factor of a bank's assets, the lower will be the value of its risk- weighted assets and the higher will be its CAR.
C) The greater the average risk factor of a bank's assets, the greater will be the value of its risk- weighted assets and the lower will be its CAR.
D) The lower the average risk factor of a bank's assets, the greater will be the value of its risk- weighted assets and the lower will be its CAR.
E) The lower the average risk factor of a bank's assets, the higher will be the value of its risk- weighted assets and the higher will be its CAR.
Correct Answer:
Verified
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