CRAR - GS questions based on daily current affairs

1)   CRAR which stands for ‘capital to risk weighted assets ratio’, is also known as

a. Capital Buffer Stock
b. Capital Weighted Ratio
c. Capital At Risk
d. Capital Adequacy Ratio
Answer  Explanation 

ANSWER: Capital Adequacy Ratio

Explanation:
CRAR is a standard metric to measure balance sheet strength of banks. BASEL I and BASEL II are global capital adequacy rules that prescribe a minimum amount of capital a bank has to hold given the size of its risk weighted assets. Capital Adequacy can indicate the capacity of the Bank's ability to absorb the possible losses.