Consider the following statements: 1. Capital Adequacy Ratio (CAR) 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

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Q: 61 (IAS/2018)
Consider the following statements:
1. Capital Adequacy Ratio (CAR) 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.
Which of the statements given above is/are correct?
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question_subject: 

Economics

question_exam: 

IAS

stats: 

0,124,44,124,10,26,8

keywords: 

{'capital adequacy ratio': [0, 0, 0, 1], 'individual bank': [0, 0, 0, 1], 'banks': [5, 6, 5, 25], 'car': [0, 2, 12, 17], 'own funds': [0, 0, 0, 1], 'holders': [0, 0, 0, 2]}