Economics · Banking Regulations
When the central bank increases the Capital Adequacy Ratio (CAR) requirements for banks, what is the primary goal?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1To make it easier for banks to declare higher dividends
- 2To reduce the number of employees working in the banking sector
- 3To force banks to lend more money to the agricultural sector
- 4To ensure that banks have enough capital to absorb a reasonable amount of loss✓
Correct answer
To ensure that banks have enough capital to absorb a reasonable amount of loss
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Banking Regulations MCQs →Want more practice questions on Banking Regulations?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Banking Regulations