UPSC Prelims GS - 2018

Question 16
EASYCorrect: +2Incorrect: -2

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?

    a
    1 only
    b
    2 only
    c
    Both 1 and 2
    d
    Neither 1 nor 2