Q.  In context with the Capital Adequacy Ratio of 9%, if a bank has lent Rs. 100, the Bank must have a capital base of at least which among the following amounts?
Answer: Rs. 9
Notes: The Capital Adequacy Ratio (CAR) is a measure of a bank's capital in relation to its risk-weighted assets. A CAR of 9% means that for every Rs. 100 lent, the bank must maintain a capital base of at least 9% of that amount. Calculation: Capital required = 9% of Rs. 100 = Rs. 9. Thus, if a bank lends Rs. 100, it must have a capital base of at least Rs. 9 to meet the CAR requirement. Trivia: The Basel Accords, established by the Basel Committee on Banking Supervision, set international standards for CAR to ensure banks can absorb a reasonable amount of loss and comply with statutory Capital requirements.