Match the following with regard to performance of banks: List-IList-II a. NIM i. ability to deal with…
Net interest margin reflects profitability, while the current-account and savings-account deposit mix relates to a bank's cost of funds. Non-performing assets indicate…
Choose your answer
Match the following with regard to performance of banks:
| List-I | List-II |
|---|---|
| a. NIM | i. ability to deal with unexpected losses |
| b. CASA | ii. reflects profitability |
| c. NPA | iii. relates to cost of funds |
| d. CAR | iv. risk of default |
Answer and explanation
Correct answer C
Net interest margin reflects profitability, while the current-account and savings-account deposit mix relates to a bank's cost of funds. Non-performing assets indicate credit-default problems, and the capital adequacy ratio indicates the capital available to absorb unexpected losses.
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Telangana SET (TG SET)