Economics · Banking and Currency
Which of the following ratios is primarily prudential for solvency regulation and does not directly limit the credit creation multiplier capacity of commercial banks in the traditional monetary framework?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Cash-to-Deposit Ratio
- 2Statutory Liquidity Ratio (SLR)
- 3Capital Adequacy Ratio (CAR)✓
- 4Cash Reserve Ratio (CRR)
Correct answer
Capital Adequacy Ratio (CAR)
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