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From course:

Economics A Level (DONEEEEEEE)

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Question:

What are the Capital and Liquidity Ratios?

Author: eric_galvao



Answer:

-Capital Ratio will measure the Bank's Capital to Loans. It gives a Measure of Risks Attached with the Bank's Lending and the Banks Stability -Liquidity Ratio measures the Highly Liquid Assets to the Short Term Needs for Cash. Also gives an Idea of Bank Stability


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