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Which of the following ratios measures the minimum capital a bank must hold relative to its risk-weighted assets, and directly affects its lending capacity?

AStatutory Liquidity Ratio (SLR)

BCash Reserve Ratio (CRR)

CCapital Adequacy Ratio (CAR)

DNet Interest Margin (NIM)

Answer:

C. Capital Adequacy Ratio (CAR)

Read Explanation:

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