The capital of financial institutions is often measured by the ________ ratio.

Name: The capital of financial institutions is often measured by the ________ ratio.
Brand: Quizplus
Rating: 4.8 (55 reviews)

Question

Quizplus · Accepted Answer

The net worth ratio, also known as the capital adequacy ratio, measures the amount of capital that a financial institution holds as a percentage of its total assets. It is a measure of the institution's ability to absorb losses and maintain solvency. This ratio is typically used by regulators as a benchmark for financial stability.

The Capital of Financial Institutions Is Often Measured by the ________